A creditor offers bitcoin miner Core Scientific $72 million to avoid bankruptcy

Financial services platform B. Riley suggested Bitcoin miner (BTC) Core Scientific 72 million USD financing to avoid bankruptcy and preserve shareholder value for Core Scientific.

B. Riley, one of Core Scientific’s main lenders, with $42 million. USD loans, described the terms of the financing agreement. carta December 14 US dollars, in which it stated that it is ready to finance the first 40 million.

The financial platform offered it the remaining $32 million would depend on the BTC miner stopping all payments to the equipment lenders and bitcoin prices below $18,500.

The last time bitcoin price exceeded $18,500 was on November 9before that, it fell more than 14 percent in one day.

Mr. Riley’s assessment of Core Scientific’s situation was dire; said she used a “reckless and aggressive strategy […] continue to build power facilities and expand miners without selling bitcoins or capping prices.

noted that for this approach Core Scientific in April. was forced to sell 9,618 BTC for $362 million. USD, which caused a huge loss to the mining company.

Core Scientific November 22 in the submitted quarterly report admitted that I didn’t have enough cash reach 2023 He also said he doubts his ability to raise funds from financing or capital markets.

October 26 the company pointed to the low price of bitcoin, rising electricity costs and the abandonment of the bankrupt crypto-lender Celsius to repay the US dollar loan of 2.1 million like the cause of your financial problems.

Mr. Riley seemed confident that Core Scientific would accept the funding offer and reminded the miner of its responsibility to shareholders, indicating:

“We believe it would be a serious breach of the fiduciary duties of the board and management if the trustees, who are supposed to put our interests before their own, allow a Chapter 11 bankruptcy filing.”

From 2022 Core Scientific shares fell 97.7 percent from $11.02 to $0.25 in early trading.

Walmart itself has started selling ASICs for bitcoin mining
Core Scientific stock price Nasdaq one-year chart. Source: TradingView

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Source: news.google.com

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