Core Scientific Receives An Investment Proposal Of $72 Million
According to an open letter from B. Riley to Core Scientific’s shareholders and lenders, B. Riley Financial is offering a $72 million financing deal to Core Scientific, which will support the mining firm to avoid bankruptcy and extend its runway by more than two years.
One of Core Scientific’s biggest creditors, B. Riley Financial, asserted that providing a new financial lifeline would be offering Core Scientific a solution to its problems rather than declaring bankruptcy.
“Bankruptcy is not necessary at all, Core Scientific’s financial problems are self-imposed and can be corrected with an open, transparent discussion and ongoing participation with its creditors and equity holders.”said B. Riley
The mining firm previously indicated that all alternatives, including bankruptcy, were on the table when it chose to halt principle and interest payments to finance and equipment lenders in late October, a decision that astonished B. Riley.
As Coincu reported In November, the mining firm announced a $435 million loss and warned that it had “substantial doubts” about its ability to raise cash due to uncertain market circumstances.
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