TechFlow news, Bitcoin mining hardware manufacturer Bitmain and crypto platform Anchorage Digital plan to acquire a stake in Core Scientific (CORZ), the second-largest publicly traded Bitcoin miner.
According to documents filed with the bankruptcy court, Core Scientific will purchase 27,000 Bitmain Antminer S19j XP mining machines for $77.1 million. Upon the effectiveness of the plan, this acquisition will be funded with $23 million in cash and $54 million in company equity. By partially paying for the machines with shares, the transaction will reduce Core Scientific’s need for new cash by $30 million.
As of the petition date, Mass Mutual Asset Finance, Barings, BlockFi, 36th Street Capital Partners, and Trinity Capital collectively held approximately $193 million in loans to Core Scientific, which are expected to elect to assume the guaranteed debt.
In addition, the company is negotiating with investment bank B. Riley to issue $55 million in equity to existing common stockholders. B. Riley has provided Core Scientific with a $70 million loan to cover bankruptcy-related expenses. The bank will convert the outstanding balance of this loan into a deferred term loan and provide an additional $25 million in new financing.
Furthermore, Core Scientific is negotiating a settlement agreement with lender Foundry—owned by Digital Money Group, the parent company of CoinDesk—to fully satisfy Foundry’s claims, and is awaiting court approval for multiple settlement agreements reached with equipment and service providers.
