BitcoinWorld

Bitcoin News

Creditor Offers Bitcoin Miner Core Scientific $72M to Avoid Bankruptcy

B. Riley suggested that the miner’s problems were “self-inflicted,” and he outlined a way for it to avoid bankruptcy.

B. Riley has offered Bitcoin miner Core Scientific $72 million in financing in order to avoid bankruptcy and preserve value for Core Scientific stakeholders.

In a Dec. 14 letter, B. Riley, a top lender to Core Scientific with $42 million in loans currently outstanding, outlined the terms of the financing agreement, noting that it is ready to fund the first $40 million “immediately, with zero contingencies.”

The remaining $32 million, according to the finance platform, would be contingent on the BTC miner suspending all payments to equipment lenders while Bitcoin prices are below $18,500.

Bitcoin’s price last exceeded $18,500 on November 9, before plummeting 14% in a single day.

B. Riley’s assessment of Core Scientific’s situation was harsh, claiming the company had pursued “an aggressive, ill-conceived strategy to continue to build out power facilities and expand miners while never selling Bitcoin on hand and never hedging prices.”

It was noted that as a result of this approach, Core Scientific was forced to sell 9,618 BTC in April for $362 million, representing a significant loss to the miner.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.