My name is Adam Sullivan, CEO of Core Scientific. On December 4th, we released a webcast summarizing important aspects of our emergence from Chapter 11. We have made great progress since that webcast. Today, I would like to provide an update on our progress, highlight the final important details of our emergence, and explain key concepts of our emergence so that you understand what is happening and how it will impact our financial stakeholders. We are now on the verge of emerging from Chapter 11 with a plan that has garnered support from the majority of stakeholders and provides for robust recovery. We are excited about the strength of our business, our growth plans, and our potential to create shareholder value. As always, we appreciate your confidence in and support for the Core Scientific team.
Please read our legal disclaimer, which is available either by pausing this webcast or via the link to the presentation on CoreScientific.com. This presentation is solely for informational purposes and is only a summary of our plan. This presentation contains projections and other forward-looking information that may not be achieved and are subject to risks, including those risks disclosed in the disclosure statement and in the company's SEC documents, which are available through our website and the SEC website. For additional details, all shareholders and creditors should read our plan and disclosure statement that is available via a link on slide 7. Today, I will discuss the following topics: a summary of our progress towards emergence and relisting on Nasdaq, an overview of our post-emergence capital structure, and expected recovery for existing stakeholders.
The full presentation file is available in the Investor section of our website under Events and Presentations. Let's review the great progress we've made since I presented to you last month. First, we paid off our debt financing in full. This is highly unusual for a company in our situation to generate sufficient cash flow during bankruptcy to pay off this financing. It's a testament to the strength of our business and our team. Next, we finalized the equity rights offering by raising $55 million, and demand was greater than the amount of capital we set out to raise. This oversubscription is an indication of the confidence our shareholders have in our business and our future. Third, we completed 2023, having mined more Bitcoin in the year than any other public miner in North America.
We mined more than 19,000 Bitcoin, including more than 13,700 Bitcoins for ourselves and more than 5,500 Bitcoins for our hosting customers in our data centers. Next, our plan of reorganization was confirmed by the court on January 16th, clearing the way for our emergence anticipated for January 23rd. We have entered the final phase of our restructuring and look forward to our emergence and anticipated relisting this week. Now that the details of our emergence have been finalized, I would like to share with you some of the key elements. One of our goals in structuring our emergence was to strengthen our balance sheet and give us the ability to reduce and even eliminate our debt over time.
With that goal in mind, we have reduced our net debt by more than $400 million from more than $1 billion when we filed in 2022 to $571 million when we emerged. Based on a calculated enterprise value of $1.5 billion at emergence, what we call plan value, our plan equity value will be $929 million. Further facilitating our emergence, we have structured the maturity on our debt such that we will only have to make $50 million of required amortization payments through the end of 2025, well within our operating cash flow forecast, giving us time and discretion to potentially reduce our debt even more. As we have discussed previously, the new convertible notes and warrants represent opportunities to eliminate a significant amount of the debt on our balance sheet at emergence, subject to our share price performing well after we exit Chapter 11.
Next, we have finalized the share exchange ratio of 10 to 1. This means that for every 100 existing shares owned pre-exchange, shareholders as of the record date set for January 23rd, 2024, will receive 10 new shares in the company in addition to the warrants I'll describe in a moment. Now, I would like to review the key post-exchange share prices that are important to keep in mind for our emergence. At emergence, the share price at plan value following the 10 to 1 exchange will be $5.02. Once we begin trading on Nasdaq, anticipated for the morning of January 24th, 2024, the market will determine our price at any given moment thereafter.
At a post-exchange share price of $5.83, an increase of $0.81, the holders of our convertible notes, totaling $260 million on our balance sheet, will have the ability to start converting their notes into new common shares. As the price of our shares increases, the value of the notes will also increase. At a post-exchange share price of $7.79, the company will convert all remaining notes to shares, reducing our debt further. That's the mandatory conversion price. Now, let's turn to the warrants, which represent tradable contracts to buy shares in our company in the future. Each existing shareholder as of January 23rd, 2024, will receive a certain number of Tranche 1 and Tranche 2 warrants. Tranche means class or group. The first tranche or group of warrants can begin to be exercised when the share price rises above $6.81.
To exercise the Tranche 1 warrant, warrant holders will need to pay $6.81 to Core Scientific for each share they choose to purchase. Every warrant entitles a holder to purchase one new Core Scientific share. An increase in the share price above $6.81 only makes that exchange more valuable. 50% of all cash the company receives from the exercise of tranche one warrants must be used to pay down the new secured notes, which I'll discuss in a moment. If all Tranche 1 warrant holders exercise all their Tranche 1 warrants, that represents about $670 million in cash to Core Scientific, which would be more than enough to retire the remaining debt, assuming the convertible noteholders convert and no new debt has been taken on by the company by that time. The second tranche or group of warrants are not exercisable until our stock trades at $8.72 or above.
These Tranche 2 warrants are exercisable for a penny. We understand that some of these terms and concepts may not be familiar to some of our viewers. We hope this description helps to clear this up for you so that you may make informed decisions. We encourage you to seek financial advice from a financial professional should you have questions about your particular financial situation. Slide 6 highlights a few key concepts that are important to keep in mind. First, with the underlying shares and the warrants we just discussed, we expect common shareholders as of the effective date to receive a total of $1.18 of pre-exchange value for each share. This value is based on the underlying shares and the warrants. Importantly, if all warrants are exercised, then existing shareholders may own as much as 60% of the equity in the reorganized company.
This is a very high level of recovery for equity in a Chapter 11 case. Second, the convertible noteholders are receiving their original value plus interest and accretion, making this a positive recovery for them. And third, as I mentioned a moment ago, the emergence plan provides a pathway to de-lever the balance sheet while providing necessary liquidity for the business. For your convenience, we have detailed the specific pages in this document that each security holder may wish to reference for their individual security. We have also provided a link to the disclosure statement, disclosure statement supplement, and Chapter 11 plan, which will provide additional details related to each of the items we are walking through today and relevant page references within that document. Now, let's review our final post-emergence capital structure.
Our plan provides a pathway to significant debt reduction and even a potential net cash position upon the conversion of the convertible notes and exercise of the Tranche 1 warrants. The important takeaways from our proposed capital structure are we are reducing debt for more than $1 billion before our Chapter 11 filing to $608 million of debt at emergence, of which $260 million is convertible to equity. We are positioned to relist with a market capitalization of more than $900 million. Now, let's review some of the details on this slide, starting with the capital structure. Total debt of $608 million at emergence. Excess cash is the lowest forecasted cash balance in our business plan over the next three years, above the minimum $20 million cash balance required for our business. Excess cash is different from cash on balance sheet.
We expect to emerge with $83 million of cash on balance sheet, putting us in a strong cash position. This leads to a total net debt of $571 million. As a reminder, our plan total enterprise value is $1.5 billion. So, subtracting $571 million in net debt results in a plan equity value of $929 million. On slide 10, we describe the four debt instruments we will have upon emergence by size, interest rate, maturity, and conversion terms if applicable. The important message here is that we have restructured our debt to be financially manageable for us and to offer opportunities to de-lever our balance sheet, as we have already indicated. Slide 11 illustrates the scheduled maturity of our debt post-emergence. We are very comfortable with this plan, the resulting debt levels, and the potential to reduce it entirely over time.
With just $50 million in debt amortization payments required to be made before the end of 2025, we believe this schedule will provide ample opportunity for us to pay down debt over the course of the next few years. The maturity shown in 2029 is mainly influenced by the $260 million in convertible note, which can be mandatorily converted into equity at a $7.79 per share price post-exchange based on our assumptions today. Slide 12 illustrates how existing shareholders may own up to about 60% of the reorganized company's equity if all warrants are exercised. This is a very high rate of recovery for existing shareholders. A common question we have received from investors relates to the planned exchange of shares. Shares currently trading in the market today will be exchanged at a ratio of 10 to 1 for each new share in reorganized Core Scientific.
Shareholders as of the effective date will also receive both Tranche 1 and Tranche 2 warrants. The record date for receiving both the new stock and these new warrants is expected to be January 23rd, meaning that if you are holding the existing common shares on that day, you will receive the new shares and both tranches of warrants that will be exercisable for new shares in reorganized Core Scientific. The warrants that are currently outstanding will be canceled as part of the bankruptcy process. These are distinct from the new warrants that will be given to existing equity holders as part of the exchange. Remember, the exchange does not change the value of your holdings. Now that we have described the capital structure and share exchange, let's address what actions stakeholders will need to take and what securities each of our stakeholders will receive.
Existing shareholders who hold through DTC do not need to take any action to receive your new Core shares and warrants as long as you are the shareholder of record as of the effective date, which is expected to be January 23rd. If you hold your existing common shares through DTC, your bank or broker will receive your new Core shares and warrants directly. If you participated in the equity rights offering, that will not affect your recovery on account of existing Core shares you own. Existing Core shareholders who hold existing common shares on the books and records of the company's transfer agent, Computershare, should contact Computershare Investor Services and their broker or bank if they want to transfer their securities from Computershare to another financial institution via DTC. Existing noteholders do not need to take any actions to receive their recovery under the plan.
Holders should contact their brokers for more information. Slide 17 provides the math behind the share price data I provided earlier. We suggest you review this slide to understand the determination of the various share prices. When you will receive your new shares and warrants will depend on where you hold them. If your common shares are held in a bank or broker in DTC, they should be received there on or before the first day of trading. If you hold your common shares on the books of Computershare, you will receive a DRS statement, a statement showing your holdings. To move your share or warrants to DTC, you will need to provide your DRS statement to a DTC eligible bank or broker. Call Computershare Shareholder Services and your broker or bank to have your new securities transferred.
Original CORZ warrants will be canceled and extinguished as of the effective date. The new shares and warrants will be freely tradable on the first day of trading as long as you are not an underwriter as defined by the Bankruptcy Code and only after they have been received by you and transferred to your broker account. I described the exchange process and actions required, and now I'll provide more details on shareholder recovery. The important point here is that we have created seven different forms of recovery for existing shareholders. New shares and warrants comprise the first six. For every 10 shares you hold today, you will receive one share of new common stock, 2.5 Tranche 1 warrants, and 2.1 Tranche 2 warrants.
The potential exists for additional distributions based on resolution of disputed claims, which could result in you receiving an additional 0.2 shares of new common stock, 0.02 Tranche 1 warrants, and 0.01 Tranche 2 warrants. These additional distributions will also be made to the shareholders as of the effective date, again currently expected to be January 23rd, 2024. The seventh is the equity rights offering that successfully closed after achieving our $55 million raise. As a note, the shares that will be received through the equity rights offering are new shares. They will not receive the associated warrants or the potential for the additional possible distributions. The new shares received through the equity rights offering will be freely tradable post-emergence. Now, let's review what each shareholder will be receiving in a bit more detail. First are the Tranche 1 warrants.
These are cash exercise warrants, which means a cash payment to the company will be required at exercise. These warrants allow existing equity holders to purchase up to 30% of new common stock subject to dilution to the extent the exercise of the Tranche 2 warrants. They are exercisable immediately after the effective date of the plan and have an exercise price of $6.81 per post-exchange share, which is the company's equity value implied at a total enterprise value of $1.875 billion. Next are the Tranche 2 warrants. These warrants require a minimal cash payment at exercise, $0.01 per warrant, and may instead be exercised on a cashless basis for a number of shares of new common stock. These warrants allow existing equity holders to purchase up to 20% of new common stock on a fully diluted basis.
They are exercisable immediately after the effective date of the plan and have an exercise price of $8.72, which is the company's equity value implied at a total enterprise value of $2.5 billion. And now let's move to the bottom part of this page, which is key to understanding our emergence plan. The expected pre-exchange, not post-exchange share price at a $1.5 billion total enterprise value is $0.50. The $1.5 billion enterprise value and associated plan equity value numbers are negotiated, and the stock may trade at a value that is higher or lower than this negotiated value. The potential value of the two tranches of warrants as calculated using a Black-Scholes model a s $0.61 per pre-exchange share. When the potential value of the two tranches of warrants is added to the expected pre-exchange share price, the total value to existing equity holders is $1.11 per pre-exchange share.
This point is very important. It highlights the incremental value available to existing shareholders as of the effective date through our plan. As I mentioned earlier, there is the potential for additional distributions based on the disputed claims, which could result in a maximum potential distribution that would have six cents of value at the pre-exchange share price at a $1.5 billion total enterprise value. We believe that our plan provides the opportunity for current shareholders to retain significant value in the company post-emergence, with further upside potential available based on the performance of our shares. The successful equity rights offering enabled us to raise $55 million from existing shareholders, and we are grateful for their vote of confidence in our company and team.
We expect shares purchased through the equity rights offering to be received on or shortly after the emergence date on account of shares tendered in the ERO process through a bank or broker. ERO participants who exercise their oversubscription rights will receive their additional oversubscription ERO shares on the books and records of Computershare. DRS statements representing the oversubscription ERO shares will be available shortly after emergence. As a reminder, ERO shares are not entitled to the warrants previously described. In addition to our equity holders, our emergence plan also addresses the needs of our noteholders. If you own the April class of convertible notes, you will receive your original par plus interest and accretion at a negotiated settlement amount, which results in a total amount of $1.631 for every dollar you originally invested.
This class receives three securities totaling approximately $351 million, of which $150 million is in new secured notes, about $93 million in the new secured convertible note, and about $108 million in new common stock at the $1.5 billion total enterprise value. If you own the August class of convertible notes, you will receive your original par plus interest and accretion at a negotiated settlement amount, which results in a total amount of $1.203 for every dollar you originally invested. This class receives two securities totaling approximately $361 million, of which about $167 million is in the new secured convertible note and approximately $194 million in new common stock at the $1.5 billion total enterprise value. Hopefully, this review has been helpful to you.
In summary, we are now on the verge of emerging from Chapter 11 with a plan that garnered support from the majority of stakeholders and provides for robust recovery. We are excited about the strength of our business, our growth plans, and our potential to create shareholder value. As always, we appreciate your confidence in and support for the entire Core Scientific team. Thank you for joining us today. Please visit our website for more information. On behalf of the entire Core Scientific team, we wish you well.