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.
