New Core Scientific CEO says company will exit bankruptcy by year end

Adam Sullivan, who began as CEO of Core Scientific final Friday, isn’t any stranger to bitcoin mining.

In truth, he’s been intimately concerned within the business since not less than 2016. Again then, Sullivan was operating a GPU mining enterprise on the aspect whereas he labored full time at a hedge fund in New York, he advised Blockworks in an interview.

In 2018, Sullivan solely fell extra in love with bitcoin mining when he went to go to rigs all throughout the nation, most of which had been solely 5 to 10 megawatts, he mentioned.

“I went on a street journey and doubtless visited about 60 websites,” he advised Blockworks. “It was improbable. I used to be like, what? That is what I actually, actually like,” he mentioned.

At the moment, Sullivan was working at an funding banking agency referred to as XMS Capital Companions. There, Sullivan led the digital property group with a particular concentrate on mergers and acquisitions (M&A) and capital raises within the bitcoin mining business.

One firm he labored intently with was Riot Platforms. He suggested them on all their capital raises and M&A offers from after they had simply three workers, he mentioned.

XMS additionally labored on Riot’s 2021 acquisition of Whinstone’s 100-acre bitcoin mining web site in Rockdale, Texas, an $80 million money deal.

He even labored together with his future employer fairly intently whereas at XMS, as he was a part of the particular goal acquisition firm (SPAC) that took Core Scientific public in 2021.

“I’ve been intimately concerned with the corporate for a variety of years, and it made quite a lot of sense for me to make the transfer over to [Core Scientific],” Sullivan mentioned. “I’ve labored with each firm on this business, labored on most likely virtually each aspect of each M&A deal that’s occurred in Bitcoin mining.”

Core Scientific co-founder Mike Levitt, who had been serving as chief govt of the corporate since Kevin Turner stepped down from the position in Might 2021, has noticed Sullivan within the position of firm president for practically 5 months.

Learn extra: Handful of public bitcoin miners log modest hashing energy positive factors for July

Levitt, who will stay as chair of the board, spoke extremely of Sullivan’s capabilities and expertise, saying he was clearly “the fitting man for the job.”

Sullivan had served as Core Scientific’s president since April 2023.

“I knew that long run we would have liked to herald anyone that would succeed me,” Levitt advised Blockworks.

Relating to Core Scientific’s chapter proceedings, a spokesperson advised Blockworks the method “is continuing effectively.” Sullivan added that the definitive exit date is unknown, however mentioned that he expects to be out of it “by the tip of this 12 months.”

As a part of its marketing strategy, Core Scientific might be executing a miner refresh, upgrading its current machines so that they’re extra environment friendly.

One other cornerstone to the plan, in keeping with Sullivan, might be to pay down any debt remaining after rising from chapter.

“We’ve got a really sturdy plan popping out of chapter,” Sullivan advised Blockworks. “We absolutely anticipate that this group will have the ability to execute on what’s a way more tamped down marketing strategy than we had beforehand.”