Core Scientific Raises $500M from BlackRock and Others

According to a court document accessed by Bloomberg, BlackRock and a number of other well-known investors facilitated the cryptocurrency mining company, Core Scientific, with a loan of about $500 million by acquiring its secured convertible notes. 

Ibex Investors was the main source of funding, as it bought convertible notes worth around $100 million. 

Apollo Capital Management purchased $22.6 million in April and $11 million in August, while BlackRock provided $38 million through purchases. Both asset managers contributed a total of $23 million to Core Scientific’s debtor-in-possession loan so that company could carry on mining BTC in order to pay off debt.

Core Scientific Manages to Operate Amid Bankruptcy

Interestingly, the company’s share price increased over the ensuing weeks despite declining income and low BTC pricing. CORZQ is currently trading at about $0.11, up from the $0.05 high reached about a month ago.

Core Scientific extracted 1,435 BTC in December, despite the multi-billion dollar losses recorded in 2022. The November output was 1,356 BTC in contrast. Additionally, the self-mining power increased from 15.4 EH/s to 15.7 EH/s.

The company offered operating support and data center colocation facilities for 91,000 customer-owned ASIC systems in November and for 80,500 in December, which corresponded to about 37% and 34% of the operational mining fleet, respectively. 

As per the reports from the end of the previous year, the global investment management company BlackRock was one of the creditors that provided a $17M loan to the bankrupt cryptocurrency mining company so that it could carry on with its operations while going through bankruptcy.

Notably, Core Scientific announced that it was seeking bankruptcy protection due to the poor profitability of the company and the low price of bitcoin on the cryptocurrency market. The mining company claimed that the high price of power and mining machinery was a factor in the business’s poor financial performance.