Bloudmine

Cloud Mining

Cloud mining is the easiest and most effective way to make money from cryptocurrency mining without buying and maintaining your equipment.

Get access to real mining power without any extra effort

Blueprint

A perfect balance of exhilarating flexiblity and the effortless simplicity of the Code Supply Co. WordPress themes.

The ultimate publishing experience is here.

BTC miner Core Scientific gets interim nod for $37.4M bankruptcy loan

A U.S. bankruptcy court has granted Bitcoin (BTC) miner Core Scientific interim approval to access a $37.5 million loan from existing creditors to fund the firm amid its liquidity issues.

Core Scientific is one of the largest cryptocurrency mining companies in the United States, but filed for Chapter 11 bankruptcy on Dec. 21 as a result of rising energy costs, declining revenue and the price of BTC in 2022.

In a public statement made on that same day, Core Scientific outlined that it intends to “move swiftly through the restructuring process” and maintain its self-mining and hosting operations.

The loan comes from a group of creditors called the Ad Hoc Noteholder Group — which holds more than 50% of Core Scientific’s convertible notes — which agreed to provide debtor-in-possession (DIP) facility commitment loans up to a total of $75 million, according to court filings.

The firm’s application was approved on Dec. 22 and court filings show that the DIP loan will have a 10% per annum interest rate attached.

Core Scientific will be able to access $37.5 million immediately to keep the lights on, while it intends to apply to access the remaining $37.5 million in January as per a Dec. 23 report from Reuters, citing a company attorney.

In the initial DIP budget however, it was forecasted to apply for $12.5 million by Jan. 21.

image
Core Scientific DIP budget: Stretto 

The Reuters report also suggests the creditors understand the challenges of the bear market and are looking at a long-term play with Core Scientific.

Kris Hansen, a representative of the creditors, told the news outlet that the existing stakeholders “have faith” in the company’s future despite its recent troubles.

In its Q3 financial report, Core Scientific reported having $1.4 billion worth of assets and $1.33 billion worth of liabilities as of Sept. 30, showing a tight balance sheet amid the bull market.

Related: Bitcoin dips below $16.7K as US GDP meets fresh BTC price ‘death cross’

Notably, the firm reports a loss of $434.8 million in Q3 which when added to losses from the previous two quarters, witht total losses reaching $1.71 billion so far this year. As such, the firm indicated in late November that it was most likely heading towards bankruptcy without a fresh injection of cash.

The firm has reportedly mined almost 12,000 BTC this year, marking a significant improvement on the 5,769 BTC mined in 2021, however that of course has not been able to save Core Scientific from its financial woes.

This post was originally published on this site

Total
0
Shares
Leave a Reply

Your email address will not be published. Required fields are marked *

Prev
CleanSpark mined 3,750 BTC in FY’22, BTC reserves down 40% since January

CleanSpark mined 3,750 BTC in FY’22, BTC reserves down 40% since January

CleanSpark’s hash rate hit 6 EH/s on Dec

Next
Bitcoin miners increased hash rate and production despite falling BTC prices in 2022

Bitcoin miners increased hash rate and production despite falling BTC prices in 2022

The price of Bitcoin (BTC) fell by 64

You May Also Like