Bankrupt bitcoin miner Core Scientific has secured new lease of life while it tries to negotiate, getting squeezed by bulging energy costs.
According to a U.S. Securities and Exchange Commission filing on December 29th, investment firm BlackRock (BLK) has committed $17 million to bankrupt bitcoin miner Core Scientific (CORZ) as part of a new $75 million loan from the miner’s secured convertible note holders.
As of December 28th, BlackRock, Core Scientific’s largest shareholder, held $37.9 million in secured convertible notes. According to the filing, the latest $17 million is part of the new $75 million convertible notes, which are part of Core’s prearranged bankruptcy process. In a prearranged bankruptcy, the debtor comes to an agreement with its creditors prior to filing for bankruptcy.
The move comes as miners are being squeezed by high energy costs and low bitcoin (BTC) prices in general. Core stated that it expects debtor-in-possession (DIP) facilities totaling up to $75 million from some of its convertible noteholders.
(Reporting by Shikha Singh, Editing by Laxmikant Khanvilkar)
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