Core Scientific, which owns 10% of the global Bitcoin (BTC) mining hashrate, recently filed for Chapter 11 bankruptcy in the United States. Also, BlackRock, alongside other investors, will pay aid of several tens of millions of dollars to the miner in difficulty in the form of convertible notes.
BlackRock to the rescue
Via a document filed on December 22, 2022 with the SEC by BlackRockwe learn that the investment giant, alongside other companies, will provide financial loan to bankrupt miner Core Scientific.
Thus, BlackRock would have reached an agreement with various holders of convertible notes in order to pay a $75 million loan to Core Scientific so that the company can continue to operate during its bankruptcy proceedings.
🎙️ Listen to this article and all the crypto news on Spotify
Indeed, Core Scientific, which owns 10% of the hashrate global Bitcoin (BTC) mining company, recently filed for U.S. Chapter 11 bankruptcy protection as the company was no longer able to afford the financial cost of its various facilities and equipment of mining.
According to CoinDesk, BlackRock is currently the main shareholder of Core Scientificwith $37.9 million in convertible notes as of December 28, 2022. This new loan, which totals $75 million from various investors, sees BlackRock participate for $17 million.
The planned $75 million in assistance will be paid on 2 separate dates in the form of DIP financing, and will allow lenders, in return, to obtain shares in the future, in the same way as when issuing convertible notes classics. Otherwise, this loan includes an interest rate of 10% payable in kindaccording to the document.
In addition, regarding the duration of the latter, the maturity of the financing is set for June 21, 2023 with a possibility of extension to September 21.
👉 Mining news – Argo Blockchain: the mining giant narrowly avoids bankruptcy thanks to Galaxy Digital
The platform that simplifies trading
Buy crypto in minutes
Source: SEC filing
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.