Core Science Bitcoin Miner Pays $38.6 Million Debt To NYDIG Creditors

Key Points:

• Core Science bitcoin miner has paid off its $38.6 million chop NYDIG debt by handing over 27,403 devices.
• According to the company, those devices are no longer needed for their current and future business.

Core Science delivered approximately 27,403 miners to creditor NYDIG to fulfill its $38.6 million debt. The operation is part of a plan to sell some mining equipment to recover funds from creditors.

Bitcoin mining company Core Science has agreed with lender NYDIG to repay its $38.6 million outstanding debt by handing over approximately 27,403 mining machines as collateral. “The principal amount of the NYDIG’s debt exceeds the value of the primary collateral.

Asic collateral includes older model miners with lower hash rates than newer models such as the S19 XP miner,” the company said. Mining has dropped by more than 80% in the last year.

“The principal of the NYDIG Debt exceeds the value of the ASICs Collateral,(…). The ASICs Collateral consists of older models of Miners, which have lower hash rates compared to newer models, such as S19 XP Miners.”

Core Science is also “looking at the opportunity to sell some of its mining facilities,” which would limit the device’s footprint.

Core Science representatives told a bankruptcy court meeting on Wednesday that its cash flow has improved “significantly” since it filed for bankruptcy in December.

On February 1, Core Scientific and B. Riley reached a $70 million replacement loan agreement. According to the filing, the company asked the court to approve the grant to replace a $75 million debtor-owned (DIP) loan it received from convertible bondholders as part of a settlement pre-arranged bankruptcy settlement.

The filing states that B. Riley’s approval of the Replacement DIP Loan will allow the debtor to repay the original DIP funding and is now the best source of post-claim financing available to the debtor.

Previously, the company also said it plans to sell some equipment to serve the process of recovering payments to creditors.

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