News

Bitmain And Anchorage To Take Equity In Core Scientific’s Bankruptcy: Report

Key Points:

  • Bitmain and Anchorage Digital are expected to take equity stakes in Core Scientific as part of its bankruptcy.
  • Core Scientific plans to purchase 27,000 units of Bitmain’s most powerful air-cooled model for $77.1 million, with funding from cash and equity.
According to CoinDesk, Bitmain & Anchorage Digital to take equity stakes in Core Scientific’s bankruptcy. Core to buy 27K Bitmain Antminer S19j XPs. Creditors vote on reorganization plan.

Bitmain and Anchorage Digital are reportedly set to take equity stakes in Core Scientific, the second-largest publicly listed Bitcoin miner, as part of Core’s bankruptcy. The company’s reorganization plan is subject to a vote by creditors and depends on court approval for many of the settlements described.

Core Scientific plans to purchase 27,000 units of Bitmain Antminer S19j XPs, the manufacturer’s most powerful air-cooled model, for $77.1 million, funded by $23 million in cash and $54 million in equity in the company once the plan is effective, reducing their need for new cash.

Bitmain’s stake in a publicly listed miner is expected to be their first. Companies that have lent funds to Core Scientific to buy equipment can elect to convert their claims into equity or take on secured debt in the emerging company at 80% of the value of their claims.

Only Anchorage Digital is expected to pick the equity option. Core Scientific is negotiating a settlement with lender Foundry to recover Foundry’s claim fully and is awaiting court approval on a number of settlements with equipment and services providers.

Core Scientific is the world’s largest publicly listed miner in terms of total hashrate, even though Marathon Digital Holdings is quickly catching up. They filed for bankruptcy in December 2022, when much of the industry was struggling amid high energy prices and a slumping bitcoin price.

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.

Thana

I am a news editor at Coincu, where I produce daily editorial packages and manage the knowledge and review article sections. Before journalism, I earned a Bachelor's degree in Global Logistics and Supply Chain Management from Northampton University and studied news journalism at Press Association Training.

Recent Posts

$2.9M Raised, 214M Tokens Sold: Why Qubetics, Arbitrum, and Stacks Are the Best Cryptos to Buy Today?

Discover the best altcoins to buy ahead of December 2024. Learn why Qubetics, Arbitrum, and…

2 hours ago

BlockDAG’s $20M Surge in 48 Hrs Powers It Towards $600M, as Ethereum Faces Resistance and Cardano Shows Potential

Discover how BlockDAG is moving towards a $600M goal amidst Ethereum’s price challenges and Cardano’s…

3 hours ago

Best Altcoins to Buy Ahead of December 2024: Turn $2K Into $429K, Don’t Miss Out on the Altcoin Boom of 2024!

Discover the best altcoins to buy ahead of December 2024. Qubetics presale skyrockets, Celestia gains…

5 hours ago

Miami Truck Driver’s Journey with Solana: Made Millions from a $15K Investment! Can BlockDAG Show Similar Growth?

Explore how a Miami trucker turned $15K into $94M through Solana, and his next focus…

5 hours ago

Transparency vs. Decentralization: A Closer Look at Rollblock & BlockDAG Presales

Learn about BlockDAG’s $150M presale success & sustainable blockchain model versus Rollblock’s rise in online…

8 hours ago

BlockDAG’s Innovative Low-Code, No-Code Tech is Redefining the Meme Coin Market – is it the Next Hub for Meme Coin Developers? 

Assess December 2024's prominent meme coins: Dogecoin (DOGE), Pepe (PEPE), & Peanut (PNUT). Learn about…

9 hours ago

This website uses cookies.