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Bitcoin miner Core Scientific raised $500M from BlackRock, Apollo, other creditors

Seeking Alpha logo Seeking Alpha 1/24/2023

Troubled bitcoin (BTC-USD) miner Core Scientific (OTCPK:CORZQ) raised about $500M from its convertible notes that were purchased by high-profile asset managers BlackRock (NYSE:BLK) and Apollo Global Management as well as other creditors, Bloomberg reported Tuesday, citing a court filing. 

Core (OTCPK:CORZQ) filed for bankruptcy protection on Dec. 21, 2022, as miners' profitability margins suffered last year from falling bitcoin (BTC-USD) prices as well as high electricity/computing costs and network hashrate. 

In August, BlackRock (BLK), the world's largest asset manager, purchased $38M of convertible notes through funds and accounts managed by its subsidiaries, according to the report, and recently provided $17M to Core's (OTCPK:CORZQ) debtor-in-possession facility to keep the company operational. 

Similarly, Apollo (NYSE:APO) bought $22.6M of convertible notes in April followed by an $11M purchase in August and a $6M contribution to CORZQ's debtor-in-possession loan, which has a cap of $75M. 

Ibex Investors was the largest holder of CORZQ's notes, followed by fellow investment firms Gullane Capital, ICG Advisors and MassMutual. 

Previously, (Dec. 21, 2022) Core Scientific was said to explore a sale of up to one gigawatt worth of its mining facilities under development.

Now read: National Australia Bank to reportedly roll out new stablecoin on ether, algorand

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