Bitcoin (BTC) mining giant Core Scientific names former Morgan Stanley banker as new CFO after bankruptcy exit.

Bitcoin (BTC) mining giant Core Scientific has appointed former investment banker Jim Nygaard as its new chief financial officer following the company's emergence from Chapter 11 bankruptcy.

Bitcoin (BTC) mining giant Core Scientific has appointed former investment banker Jim Nygaard as its new chief financial officer following the company’s emergence from Chapter 11 bankruptcy.

Announced on Friday, Nygaard will be joining Core Scientific after nearly 30 years of experience in investment banking, focusing on mergers and acquisitions, corporate finance, and capital raising. Since 2008, he has been a managing director at XMS Capital Partners. Prior to that, he spent over a decade at Morgan Stanley, advising companies on major deals and growth strategies.

“We are pleased to welcome Jim to the team,” said Adam Sullivan, chief executive of Core Scientific.

“As a premier digital infrastructure provider for high-performance computing, we believe Jim’s deep background in corporate finance and M&A will help us continue scaling our operations. His proven ability to drive growth and shareholder value will be an invaluable asset during this pivotal stage of our evolution.”

Nygaard will be replacing Denise Sterling, who is leaving the company after helping to guide it through bankruptcy and securing over $1 billion in financing to support the company’s operations and emergence from Chapter 11.

Sterling, who joined Core Scientific in 2022 and previously held leadership roles at Upstart and Planview, will remain with the company until May 1 to ensure a smooth transition.

“We thank Denise for her leadership and contributions to Core Scientific, particularly in a time of transition and stress,” Sullivan added.

“Under her stewardship, we completed a complex bankruptcy process and secured the necessary capital to support our operations and continue executing on our strategic initiatives.”

Following the news, Core Scientific shares rose 4.57% in pre-market trading on Friday.

Bankruptcy and rebound

Core Scientific filed for Chapter 11 bankruptcy in December 2022 in the U.S. Bankruptcy Court for the Southern District of Texas after facing a liquidity crisis.

The company’s financial health deteriorated rapidly in 2022 due to a decline in Bitcoin price, rising energy costs, and increased competition in the mining industry.

To survive, Core Scientific sold a portion of its Bitcoin holdings and secured a $70 million debtor-in-possession loan from B. Riley. However, the company also faced the bankruptcy of Celsius Mining, its largest hosting customer, which posed a significant setback.

Despite entering bankruptcy, Core Scientific continued its Bitcoin mining operations throughout the restructuring process and later secured an additional $600 million in financing from existing lenders to support its emergence from bankruptcy in May 2023.

The company also secured an oversubscribed $1 billion revolving credit facility from a syndicate of banks.