Bitcoin Miner Core Scientific to Borrow $70M From B. Riley

The firm said the loan will enable it to replace an existing facility and give it "up to 15 months runway and significant flexibility."

AccessTimeIconJan 31, 2023 at 4:54 p.m. UTC
Updated May 9, 2023 at 4:07 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Bitcoin miner Core Scientific (CORZ) agreed to borrow $70 million from investment bank B. Riley to replace an existing facility and keep the company running as it goes through the Chapter 11 bankruptcy process.

In a filing, Core Scientific said it is seeking approval from the Bankruptcy Court for the Southern District of Texas Houston Division for the loan to replace a financing plan set out in December. If approved, the loan will enable the company to pay off the existing debtor-in-possession (DIP) facility and give it "up to 15 months runway and significant flexibility," it said in the filing.

  • DCG Reaches In-Principle Deal With Genesis Creditors
    02:26
    DCG Reaches In-Principle Deal With Genesis Creditors
  • Crypto Custodian Prime Trust Files for Bankruptcy
    02:06
    Crypto Custodian Prime Trust Files for Bankruptcy
  • Celsius Can Start Converting Altcoins to Bitcoin, Ether as of July 1, Judge Says
    04:58
    Celsius Can Start Converting Altcoins to Bitcoin, Ether as of July 1, Judge Says
  • FTX’s Bankruptcy Fees on Track to Be 'Very Expensive', Court Examiner Says
    05:48
    FTX’s Bankruptcy Fees on Track to Be 'Very Expensive', Court Examiner Says
  • Core Scientific's downfall followed a sorry 2022 for the bitcoin mining industry, in which firms were squeezed between falling crypto valuations and rising electricity costs. The bitcoin miner filed for bankruptcy protection in December with estimated liabilities of between $1 billion-$10 billion and between 1,000-5,000 creditors. At the time, Core Scientific accounted for around 10% of the computing power on the Bitcoin network.

    The loan "contains economic terms that are reasonable and generally superior to those provided under the original DIP facility," and better than any alternative proposal, Core Scientific said.

    "The Replacement DIP Facility lays the foundation on which the debtors will seek to negotiate a consensual Chapter 11 plan with all of their key constituents and maximize value for all stakeholders."

    Core Scientific sought to schedule a hearing for the request for Feb. 1.




    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.