One of the largest bitcoin mining companies in the U.S. has filed for Chapter 11 bankruptcy protection.

• Core Scientific has officially filed for bankruptcy.
• The filing followed a decline in the firm’s operating performance and liquidity.
• The giant bitcoin miner said it plans to continue operating as it navigates the restructuring.

Nasdaq-listed Core Scientific filed for bankruptcy in the U.S. early Wednesday, confirming late Tuesday reports that the miner would seek Chapter 11 protection on the following day.

The company said in a statement that the decision followed “a comprehensive review of potential alternatives and exhaustive discussions with various company stakeholders.” Core Scientific added that it expects to enter into a restructuring support agreement with the Ad Hoc Noteholder Group, representing more than 50% of the holders of its convertible notes.

“The filing of these cases was necessitated by a decline in the Company’s operating performance and liquidity suffering from the prolonged decrease in the price of bitcoin, the increase in electricity costs necessary to power the Company’s data centers, and the failure by certain of its hosting customers to honor their payment obligations,” per the statement. “In response to these factors, the Company has actively taken steps to decrease monthly costs, delay construction expenses, reduce and delay capital expenditures and increase hosting profitability.”

Core Scientific said it is “committed to operating normally” as it moves “swiftly through the process” of restructuring.

“During this process and upon emergence, the Company will continue to operate its existing self-mining and hosting operations, which remain significantly cash flow positive on a debt-free basis,” per the statement. “The Company remains dedicated to providing hosting services and self-mining in its state-of-the-art data centers.”