Ex-Morgan Stanley Banker Joins Core Scientific
Bitcoin mining behemoth Core Scientific has appointed Jim Nygaard, a veteran investment banker with close to 30 years of experience, as its new chief financial officer. Nygaard replaces Denise Sterling, who was instrumental in guiding the company through its Chapter 11 bankruptcy and oversaw the raising of more than $1 billion. The appointment was made in a Feb. 3 press release.
Nygaard, a managing director at XMS Capital Partners since 2008, previously spent more than a decade at Morgan Stanley. His mergers and acquisitions, corporate finance, and capital-raising experience should help Core Scientific build out operations after bankruptcy.
“Jim’s deep background in corporate finance and M&A will allow us to further expand our business. His track record of driving growth and shareholder value will be a tremendous benefit during this juncture of our transformation,” said Core Scientific CEO Adam Sullivan.
From Bankruptcy to Financial Rebound
Core Scientific filed for Chapter 11 bankruptcy in December of 2022 as a result of financial struggle brought about by a combination of events, including the bankruptcy of its largest host client, Celsius Mining. Despite the financial problems, the firm continued its Bitcoin mining operations in the course of restructuring.
Sterling, who was hired as CFO several months before the company filed for bankruptcy, played a key role in calming the company. She will remain on board until May 1 in order to allow for an orderly transition to Nygaard.
Possibly the most significant turn of fortunes for the company was securing a $70 million debtor-in-possession loan from investment firm B. Riley. That financing allowed Core Scientific to survive and exit bankruptcy successfully.
Market Reaction to Leadership Transition
After the announcement of Nygaard’s appointment, Core Scientific shares gained 4.57% during pre-market trading. The appointment shows that investors are confident that the company is able to weather financial slumps and participate in long-term expansion.
Core Scientific plans to strengthen its position as one of the market leaders in Bitcoin mining hardware after having an experienced financial director lead it.
