Core Scientific Offers $72 Million Bailout to Embattled Miner

The public miner may be saved by its lender as the two entities engage in attempts to restructure their debt.Author:BtcCaseyPublish date:Dec 14, 2022The public miner may be saved by its lender as the two entities engage in attempts to restructure their debt.Core Scientific’s lender, B Riley, has stated its intentions of loaning out $72 million to the embattled publicly traded miner. Core Scientific currently holds a $42 million loan with B Riley. The $72 million loan would be “on favorable terms” and provide two years of runway to the company before anticipating profitability. In recent months, the mining company has been facing many headwinds. Bitcoin Magazine PRO described these in October, detailing how Core Scientific was halting all debt service payments. Bitcoin holdings are now 24; they sold 1,027 bitcoins over the last month. Cash resources will be depleted before the end of the year. Core Scientific claims Celsius owes $5.4 million. Kirby McInerne LLP filed a lawsuit last week on behalf of Core Scientific investors. Despite statements from the mining company that bankruptcy was not on the table, B Riley stated that they believe that bankruptcy is not necessary. According to the lender, the previous loans were made when Bitcoin’s price was much higher than it is now and the theoretical payoff for miners was much faster. These debts were incurred by the Company as part of an aggressive, poorly-conceived strategy to continue building power facilities and expanding miners. However, they never sold Bitcoin and never hedged prices. The Company’s current position is due to this decision and the rapid maturity of mining. “Tagsterms.Public Minerscore scientificLoans

 

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