BlackRock Is The Largest Creditors Of Bankrupt Bitcoin Miner Core Scientific
Key Points:
- BlackRock is one of the creditors that lent money to Bitcoin miner Core Scientific so it could continue to run while it filed for bankruptcy.
- Its subsidiaries contributed $17 million of the new $75 million loan the miner received from convertible notes stockholders as part of its planned bankruptcy arrangement.
- Core Scientific has no intention of selling any equipment or working space, it may contemplate selling future development sites.
BlackRock is one of the creditors that lent money to Bitcoin miner Core Scientific so it could continue to run while it was filing for bankruptcy.
According to a filing submitted to the U.S. Securities and Exchange Commission on Thursday, its subsidiaries contributed $17 million of the new $75 million loan the miner received from convertible notes stockholders as part of its planned bankruptcy arrangement.
The statement states that as of December 28, the funds managed by the company also held $37.9 million in secured convertible notes issued by Core Scientific. Last year, the miner went public in a deal with a SPAC, with BlackRock acting as the deal’s anchor investor.
The Austin, Texas-based cryptocurrency mining company declared bankruptcy last week and received $37.5 million in additional funds from a group of creditors who hold the majority of the more than $550 million in convertible notes the business has issued. The interest on such a loan must be paid in kind, which is 10%.
One of the biggest Bitcoin miners, Core Scientific supplies around 10% of the processing power needed to secure the entire Bitcoin network. It is one of a select group of public miners that raised millions of dollars through debt financing during the previous bull run but battled to survive as the cryptocurrency market plummeted and electricity prices shot through the roof.
The majority of Core Scientific’s debt will be converted into equity with the assistance of the bankruptcy court as part of its plans. Although the company has no intention of selling any equipment or working space, it may contemplate selling future development sites.
Aside from the insolvent cryptocurrency lender BlockFi, other significant creditors include the parent company of the digital asset bank Anchorage Digital, Anchor Labs, B. Riley, NYDIG, and BlockFi.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
Coincu News
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BlackRock Is The Largest Creditors Of Bankrupt Bitcoin Miner Core Scientific
Key Points:
- BlackRock is one of the creditors that lent money to Bitcoin miner Core Scientific so it could continue to run while it filed for bankruptcy.
- Its subsidiaries contributed $17 million of the new $75 million loan the miner received from convertible notes stockholders as part of its planned bankruptcy arrangement.
- Core Scientific has no intention of selling any equipment or working space, it may contemplate selling future development sites.
BlackRock is one of the creditors that lent money to Bitcoin miner Core Scientific so it could continue to run while it was filing for bankruptcy.
According to a filing submitted to the U.S. Securities and Exchange Commission on Thursday, its subsidiaries contributed $17 million of the new $75 million loan the miner received from convertible notes stockholders as part of its planned bankruptcy arrangement.
The statement states that as of December 28, the funds managed by the company also held $37.9 million in secured convertible notes issued by Core Scientific. Last year, the miner went public in a deal with a SPAC, with BlackRock acting as the deal’s anchor investor.
The Austin, Texas-based cryptocurrency mining company declared bankruptcy last week and received $37.5 million in additional funds from a group of creditors who hold the majority of the more than $550 million in convertible notes the business has issued. The interest on such a loan must be paid in kind, which is 10%.
One of the biggest Bitcoin miners, Core Scientific supplies around 10% of the processing power needed to secure the entire Bitcoin network. It is one of a select group of public miners that raised millions of dollars through debt financing during the previous bull run but battled to survive as the cryptocurrency market plummeted and electricity prices shot through the roof.
The majority of Core Scientific’s debt will be converted into equity with the assistance of the bankruptcy court as part of its plans. Although the company has no intention of selling any equipment or working space, it may contemplate selling future development sites.
Aside from the insolvent cryptocurrency lender BlockFi, other significant creditors include the parent company of the digital asset bank Anchorage Digital, Anchor Labs, B. Riley, NYDIG, and BlockFi.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
Coincu News
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