Key Points:
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
Bitcoin Spot ETF Inflows have reached $510 million as of November 13, marking six consecutive…
Solana DEX trading volume reached historic highs, exceeding $5 billion daily for three days. Raydium…
Phantom iOS users are warned that a recent app update caused some users to log…
Japanese crypto exchange Coincheck is set to become the first Japanese crypto exchange to list…
The US DOJ investigates Polymarket for Alleged Illegal US User Bets Polymarket, for allegedly permitting…
Ethereum’s ICO was priced at around $0.30 per token, and today, it’s valued in the…
This website uses cookies.