BlackRock to the rescue of Core Scientific: the Bitcoin giant (again) saved from bankruptcy

Take the problem forward with Core? – While his recent bankruptcy undermines his morale, Scientific core may well find hope with this new weight support. As the mining company seeks financing, the giant Black rock brings his stone to the building.

Core Scientific saved from blackrock stranglehold?

Scientific core, is however no one. The mining company is neither more nor less than the first in the sector in terms of mining power. That made his latest bankruptcy filing all the more surprising. under Chapter 11 of US law. The meteoric rise in energy prices, combined with the drastic drop in the price of Bitcoin in 2022, turned out to be the best. Moreover, this one had alerted to this danger from November, causing a drastic drop in its share price.

However, the mining company can count on financial partners who are, to say the least, efficient. Indeed, having put a lot of balls into what was until then a promising future giant in the sector, investors don’t want to see their loot go because of the bear market, even if Core Scientific admits that it has put in place a bad conception. strategy. end B. Riley already has granted a loan of 72 million dollars in December. This was followed by a little push extra 37.4 million dollars however, immediately after.

Turmoil among miners, bankrupt Core Scientific seeks funding

That’s why today is Black rock who reaches into his wallet. The investment giant adds 17 million dollars in the pot in the form of guaranteed convertible notes. Amounts received from a report submitted last Thursday at Securities Commission (SEC) USA.

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Saving a company: a real demining job?

However, Black rock not acting like a good samaritan there. Like all other investors, the fund is very involved in the business. BlackRock would already hold $37.9 million in convertible notesof which the last 17 million would be part of a new deal 75 million in total between Core Scientific and its creditors. An agreement made before the bankruptcy process.

The whole point is that if the company re-emerges, the holders of these convertible notes will be able to convert them into cold, blocking shares. In any case, according to the statements of the director of mining at Core Scientific, Russell Cann. Of the $75 million worth of notes, 57 million have already found takers, while the company’s stock price is now at $0.08 the action.

Core Scientific is far from the only struggling mining company. Argo Blockchain also necessary sell its largest mining operation to stand up.

The example of Core Scientific speaks volumes. There is panic on board among crypto miners at the end of 2022, caught between expensive electricity and a very low Bitcoin price. In addition to the market’s difficulties, luck seems to be hitting pickaxe holders, as a The polar storm is currently hitting the USforcing the miners to disconnect their machines.

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