Core Scientific emerges from bankruptcy, receives $55 million in new funding
Share this article
Core Scientific, one of the largest Bitcoin mining companies before filing for bankruptcy, has closed a new $55 million equity offering as it prepares to exit Chapter 11 filing in December 2022.
The equity offering is oversubscribed and excess capital is earmarked for return to investors.
“Due to this successful increase and following the full payment of the previously collected DIP [debtor-in-possession] With funding from Chapter 11 in January, we are in a strong position to continue executing on our improved liquidity and growth plans,” said Core Scientific CEO Adam Sullivan.
Core Scientific expects to be listed on the Nasdaq stock exchange once the restructuring is completed and it returns to solvency. Core Scientific In mid-2021, it went public with the acquisition of Power and Digital Infrastructure Acquisition Corporation, a deal worth $4.3 billion at the time.
According to Core Scientific's latest financial report in 2015, As of its November 2023 report, the mining company had total assets of $2.3 billion and $559 million in liabilities, with equity worth more than $1.7 billion on its balance sheet.
Fresh Capital comes on the heels of Core Scientific paying off a $35 million debtor-in-possession (DIP) financing loan in full last week. The mining company still has access to $35 million in DIP financing when it settles bankruptcy proceedings this month.
The Bitcoin mining firm went into bankruptcy last year, where it cited falling Bitcoin prices, rising mining costs and increased competition from the Bitcoin mining sector as the main reasons. Core Scientific cited bad debt exposure for crypto lending firm Celsius in June 2022 amid widespread liquidity problems in the crypto industry. Alexander Mashinsky, the former CEO of Celsius, was later accused of fraud.
Core Scientific's restructuring plan predicts a net balance sheet of $709 million in net debt and $791 million in equity upon exit from bankruptcy.
Core Scientific shareholders will receive new shares at a 25:1 conversion ratio, giving them $1.08 per share pre-exchange. Meanwhile, convertible noteholders will get recovery rates of 120% to 162% of face value on existing debt notes.
Share this article
The information on or included in this website is obtained from independent sources that we believe to be accurate and reliable, but we make no representations or warranties as to the timeliness, completeness or accuracy of any information on or accessible from this website. . Decentralized Media, Inc. Not an investment advisor. We do not provide personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may be out of date, or may be incomplete or incorrect. We may, but are not obligated to, update any outdated, incomplete or inaccurate information.
You should not make an investment decision in an ICO, IEO or other investment based on the information on this website and you should never interpret or rely on any information on this website as investment advice. If you are seeking investment advice on an ICO, IEO or other investment, we strongly recommend that you consult a licensed investment advisor or other qualified financial professional. We do not receive compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities or commodities.
See full terms and conditions.
