- Core Scientific will buy 27,000 units of a Bitmain mining model for $77M
- The purchase will be funded by $54M in equity and $23M in cash
Bitmain, the biggest Bitcoin mining rig maker in the world, and crypto platform Anchorage Digital anticipate to obtain equity stakes in the bankrupt Bitcoin miner Core Scientific, CoinDesk reported. Core is the second-biggest publicly listed BTC mining company worldwide.
Creditors must vote on the company's changed reorganization plan. The court needs to approve many of the settlements described.
The equity will be worth $54M
According to this plan, Core Scientific will buy 27,000 units of Bitmain’s most powerful air-cooled mining model for just over $77 million. When the plan takes effect, the purchase will be funded by $54 million in equity and $23 million in cash. CoinDesk assumes this is Bitmain's first purchase of a publicly listed miner’s equity.
Only Anchorage is interested in Core equity
Core Scientific’s lenders can choose to either take on debt at 80% of their claims’ value or take equity corresponding to the full claims amount. When Core filed for bankruptcy in December 2022, it owed Anchorage Digital $29 million. Anchorage is the only lender who is expected to choose the equity option.
The other lenders, among whom Mass Mutual Asset Finance and BlockFi, will probably opt for secured debt.
Core’s bankruptcy costs of $70 million were covered by investment bank B. Riley. The bank will provide new financing of $25 million and change the outstanding balance of the initial loan to a delayed fixed-term loan.
Core is negotiating a settlement with Foundry
Core Scientific is also negotiating with another lender, Foundry, to recover the latter’s claim in full. The company is owned by Digital Currency Group. Core is waiting for the court to approve several other settlements with service and equipment providers.
It still has the highest hash rate in the world
Core Scientific is still the global leader where total hash rate is concerned, although Marathon Digital Holdings is hot on its heels. Core declared insolvency at a time when a lot of mining companies were fighting to stay afloat amid plummeting Bitcoin prices and high energy costs.
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