BlackRock has given a $17M fresh loan to bankrupt Bitcoin mining company Core Scientific. BlackRock’s $17 million sum is part of a new $75 million loan injection from shareholders in Core Scientific’s convertible notes, according to a U.S. Securities and Exchange Commission document filed on Thursday.
The Bitcoin miners’ bankruptcy comes as miners overall are being squeezed by higher energy costs and lower Bitcoin (BTC) prices.
Crypto miner Argo Blockchain (ARBK) has just barely avoided going bankrupt, receiving $100M in bailout funding this week from Galaxy Digital, the firm of Mike Novogratz.
Core Scientific first warned about the risks of bankruptcy at the end of October, saying it was defaulting on some loan payments, sending its stock down around 80 percent on Nasdaq.
At the time of its bankruptcy filing, Core Scientific noted it expected to receive backing from some holders of convertible notes secured by the miner, in the form of two debtor-in-possession (DIP) facilities worth up to $75 million.
The DIP facilities are set to expire on June 21, 2023, and may be extended through Sept. 21, according to a new filing.
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