Bitcoin (BTC) shares of miner Inti Scientific have soared almost 200% in the past four days, following a positive reception to the December 14 financing proposal from current creditors who hope the company can avoid bankruptcy.
Shares for the embattled miner were sitting at just over 13 cents on December 12, before climbing to nearly 40 cents as the market closed on December 15 – representing a gain of 198%.
According to financial media company Marketbeat, traders acquired 6,572 call options on December 15, 136% more than the average volume of 2,780, which shows that there is a lot of bullishness in stocks and bets that the price will continue to rise.
Some members of the Bitcoin community are also acquiring shares, with the hope that acquiring shares at current prices could result in large profits if the funding plan and the company survive through the bear market.
— CR (@CashRocket) December 14, 2022
A rally can be the start of a turnaround, or just bounce off a dead cat. Inti Imiah was hit by bad news throughout 2022 and despite its gains, prices are still 95% lower than at the start of the year.
On December 14, financial services platform B. Riley wrote a letter for core shareholders and creditors, explain a The funding plan is $72 million which he believes is enough to prevent miners from being forced to file for Chapter 11 bankruptcy.
If the deal is accepted, the first $40 million will be funded “immediately, with zero contingencies,” while the rest of the funds will be issued if Core agrees to delay payments to equipment lenders until the price of Bitcoin returns above $18,500 – a price the leading cryptocurrency has been below since Nov 9
B. Riley suggests that the financing will provide the core with two years of operating cash, and notes that based on the forecast of the analyst that the miner can generate an annual income of approximately $165 million at a Bitcoin price of $18,000, with an additional $20 million for each. $1,000 price increase.
Inti was hit hard by the broader market downturn and filed a report on October 26 citing low BTC prices, high electricity rates and the refusal of bankrupt crypto lender Celsius to pay off $2.1 million in debt is the reason why it works default on some of its debts.
The bad news continued on November 22, when the miner admitted in its quarterly report that its cash reserves could will expire at the end of 2022 and does not believe that it will be able to raise funds through financing or capital markets due to current market conditions.