• Login
Crypto Newsmart
No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO UPDATES
    • ALTCOIN
    • ETEREUM
    • NFT’s
    • CRYPTO PRICE ANALYSIS
  • LEARN CRYPTO
  • CRYPTO EXCHANGES
  • BLOCKCHAIN
  • MINING
  • SCAM ALERT
  • PRESS RELEASE
  • HOME
  • BITCOIN
  • CRYPTO UPDATES
    • ALTCOIN
    • ETEREUM
    • NFT’s
    • CRYPTO PRICE ANALYSIS
  • LEARN CRYPTO
  • CRYPTO EXCHANGES
  • BLOCKCHAIN
  • MINING
  • SCAM ALERT
  • PRESS RELEASE
No Result
View All Result
Crypto Newsmart
No Result
View All Result

BTC miner Core Scientific gets interim nod for $37.4M bankruptcy loan

in Crypto Updates, Mining
Reading Time: 2 mins read
BTC miner Core Scientific gets interim nod for .4M bankruptcy loan
3
VIEWS
Share on Facebook

A U.S. bankruptcy court has granted Bitcoin (BTC) miner Core Scientific interim approval to access a $37.5 million loan from existing creditors to fund the firm amid its liquidity issues.

Core Scientific is one of the largest cryptocurrency mining companies in the United States, but filed for Chapter 11 bankruptcy on Dec. 21 as a result of rising energy costs, declining revenue and the price of BTC in 2022.

In a public statement made on that same day, Core Scientific outlined that it intends to “move swiftly through the restructuring process” and maintain its self-mining and hosting operations.

The loan comes from a group of creditors called the Ad Hoc Noteholder Group — which holds more than 50% of Core Scientific’s convertible notes — which agreed to provide debtor-in-possession (DIP) facility commitment loans up to a total of $75 million, according to court filings.

The firm’s application was approved on Dec. 22 and court filings show that the DIP loan will have a 10% per annum interest rate attached.

Core Scientific will be able to access $37.5 million immediately to keep the lights on, while it intends to apply to access the remaining $37.5 million in January as per a Dec. 23 report from Reuters, citing a company attorney.

In the initial DIP budget however, it was forecasted to apply for $12.5 million by Jan. 21.

Core Scientific DIP budget: Stretto 

The Reuters report also suggests the creditors understand the challenges of the bear market and are looking at a long-term play with Core Scientific.

Kris Hansen, a representative of the creditors, told the news outlet that the existing stakeholders “have faith” in the company’s future despite its recent troubles.

In its Q3 financial report, Core Scientific reported having $1.4 billion worth of assets and $1.33 billion worth of liabilities as of Sept. 30, showing a tight balance sheet amid the bull market.

Related: Bitcoin dips below $16.7K as US GDP meets fresh BTC price ‘death cross’

Notably, the firm reports a loss of $434.8 million in Q3 which when added to losses from the previous two quarters, witht total losses reaching $1.71 billion so far this year. As such, the firm indicated in late November that it was most likely heading towards bankruptcy without a fresh injection of cash.

The firm has reportedly mined almost 12,000 BTC this year, marking a significant improvement on the 5,769 BTC mined in 2021, however that of course has not been able to save Core Scientific from its financial woes.

 

Source link

Top 15 Crypto-Friendly Countries and Regions 2022


  • Trending
  • Comments
  • Latest
5 Bots for crypto trading in 2023

5 Bots for crypto trading in 2023

18 January 2023
Crypto Trading vs Stock Trading in 2023

Crypto Trading vs Stock Trading in 2023

19 January 2023
10 Crypto Trading Strategies You Need To Know

10 Crypto Trading Strategies You Need To Know

13 January 2023
How to trade cryptocurrency

How to trade cryptocurrency : for Beginners Guide

25 January 2023
most profitable coin to mine

The most profitable coin to mine in 2023

26 January 2023
How to trade cryptocurrency on Binance

How to trade cryptocurrency on Binance

27 January 2023
most profitable coin to mine

The most profitable coin to mine in 2023

26 January 2023
Looking back: 2022 on ethereum.org

Looking back: 2022 on ethereum.org

26 January 2023
Asia Broadband announces release date of Gold-Backed Baboons NFT collection

Asia Broadband announces release date of Gold-Backed Baboons NFT collection

26 January 2023
How to trade cryptocurrency

How to trade cryptocurrency : for Beginners Guide

25 January 2023

  • Home
  • Disclaimer
  • Privacy Policy
  • Digital Millennium Copyright Act Policy (DMCA)
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us
CRYPTO NEWSMART

Copyright © 2021 Crypto Newsmart.

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO UPDATES
    • ALTCOIN
    • ETEREUM
    • NFT’s
    • CRYPTO PRICE ANALYSIS
  • LEARN CRYPTO
  • CRYPTO EXCHANGES
  • BLOCKCHAIN
  • MINING
  • SCAM ALERT
  • PRESS RELEASE

Copyright © 2021 Crypto Newsmart.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Manage Cookie Consent

We use cookies to optimise our website and our service.

Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
Preferences
{title} {title} {title}