Cryptocurrency miner
Core Scientific Inc.,
one of the world’s largest bitcoin miners, said Thursday that it may seek bankruptcy protection as it contends with the prolonged slump in bitcoin prices coupled with an increase in electricity costs.

The company is also in litigation with crypto lender Celsius Network LLC, and alleges that Celsius has refused to pay its bills since it filed for chapter 11 itself, threatening Core Scientific’s own financial health.

Core Scientific said that due to the impact on its performance and liquidity, it plans to miss debt payments due within days, and has engaged Weil, Gotshal & Manges LLP and
PJT Partners
as legal and financial advisers.

Core Scientific said that as of this week it held 24 bitcoin, compared with 1,051 bitcoin at the end of September.

“The company anticipates that existing cash resources will be depleted by the end of 2022 or sooner,” Core Scientific said.

Write to Alexander Gladstone at