Bitcoin miner Core Scientific raised $500M from investors
Core Scientific got DIP loans totaling more than $50 million from these institutional investors to maintain operations throughout the bankruptcy process.
According to court documents, BlackRock and Apollo Capital Management were among the creditors who provided Core Scientific, a defunct crypto miner, with a $500 million loan.
When the price of Bitcoin (BTC) fell last year, Core Scientific, which recently filed for Chapter 11 bankruptcy, struggled to repay its obligations.In August 2021, BlackRock acquired $38.2 million in convertible notes from Core Scientific.
Contrarily, according to the documents, Apollo bought $22.5 million worth of convertible notes in April 2021 and another $10.9 million in August 2021.
Ibex Investors, which acquired convertible notes for $97.9 million from Core Scientific in April 2021, was the biggest creditor. In the same month, the miner raised $61.7 million and $37.6 million from ICG Advisors and Kensico Capital Management, respectively, using convertible notes.
The miner received additional payments from Kensico, Marsico, and Massachusetts Mutual Life Insurance Company totaling $43.6 million in August.
In the same month, the miner sold convertible shares to Toroso Investments, Jordan Park Group, and Sabby Volatility Warrant Master Fund for amounts of $28.9 million, $31.1 million, and $2.7 million, respectively.
According to the documents, the defunct miner additionally raised $15.29 million with convertible notes from Corbin Capital Partners. Many of these creditors also provided Core Scientific with debtor-in-possession (DIP) loans, allowing the miner to keep functioning despite filing for bankruptcy.
The defunct miner received DIP loans from Ibex, BlackRock, and Apollo totaling $10.1 million, $17 million, and $6.1 million, respectively. According to the documents, MMLIC, Sabby, Jordan, and Corbin collectively provided another $24 million in DIP loans.
