As stated in a document filed to the U.S. As part of the miner's anticipated bankruptcy strategy, the Securities and Exchange Commission announced on Thursday that its companies had contributed $17 million of the new $75 million loan that the miner had received from holders of convertible notes stock.
According to the disclosure, the funds managed by the corporation have $37.9 million in secured convertible notes issued by Core Scientific as of December 28. In a deal with a SPAC last year, the miner went public, with BlackRock serving as the deal's anchor investor.
Last week, a cryptocurrency mining company based in Austin, Texas, filed for bankruptcy and collected an additional $37.5 million from a group of creditors who control most of the more than $550 million in convertible notes the company has issued. Such a loan requires 10% interest, which must be paid in kind.
Core Scientific, one of the largest Bitcoin miners, contributes about 10% of the processing power required to protect the entire Bitcoin network. It is one of a small number of public miners who struggled to survive as the cryptocurrency market crashed and electricity bills skyrocketed after raising millions of dollars through debt financing during the previous bull run.
As part of its preparations, Core Scientific will use the aid of the bankruptcy court to convert the majority of its debt into equity. Although the corporation has no plans to sell any machinery or office space, it may think about doing so in the future.
In addition to the insolvent cryptocurrency lender BlockFi, other important creditors include Anchor Labs, B. Riley, NYDIG, BlockFi, and the parent firm of the digital asset bank Anchorage Digital.
