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. Nygaard replaces Denise Sterling, who played a key role in leading the company through bankruptcy and helped raise over $1 billion, according to a Feb. 3 press release.
With nearly 30 years of experience in investment banking, focusing on mergers and acquisitions, corporate finance, and capital raising, Nygaard has been a managing director at XMS Capital Partners since 2008. Before that, he spent over a decade at Morgan Stanley, advising companies on major deals and growth strategies.
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.”
Core Scientific chief executive, Adam Sullivan
From bankruptcy to rebound
Sterling became CFO shortly before Core Scientific filed for Chapter 11 bankruptcy in December 2022. She will remain with Core Scientific until May 1 to ensure “seamless transition,” the company said. Following the news, Core Scientific shares soared 4.57% on pre-market trading.
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 caused by multiple factors, including deteriorating financial performance and the bankruptcy of Celsius Mining, its largest hosting customer.
Despite filing for bankruptcy, Core Scientific continued its Bitcoin mining operations throughout the restructuring process. The company later secured a $70 million debtor-in-possession loan from financial firm B. Riley, helping it stay afloat and eventually exit bankruptcy.
