Coingradient

Cryptocurrencies, blockchain, NFT and new trends

Anchorage, Bitmain to get equity as part of Core Scientific bankruptcy plan

Companies • August 8, 2023, 12:22PM EDT Published 1 minute earlier on   The Block

Quick Take

  • Anchorage Digital and Bitmain opted to get paid back in equity for debt Core Scientific owes. 
  • Core Scientific filed for Chapter 11 bankruptcy protection in December last year. 

Stay updated on Pro Crypto Ecosystems news by locking ACS tokens with The Block.

Connect/Create Wallet You can unlock at any time.*
No wallet? No problem. You can set one up for free. We recommend Torus for first-time users.
*a 2% locking fee will be added at the time of locking. Learn more about Access Protocol

Anchorage Digital and Bitmain are set to take equity stakes in the bankrupt crypto mining firm Core Scientific as the firm attempts to reorganize.

Anchorage opted to take an equitization option for what Core Scientific owes. Bitmain will sell Core Scientific 27,000 bitcoin mining rigs, taking $23 million in cash and $54 million in company equity.

Creditors are awaiting a vote on the the company’s reorganization, according to court filings.

Core Scientific creditors taking on secured debt include BlockFi, 36th Street Capital Partners, Barings, MassMutual Asset Finance, Stonebrier Commercial Finance, Trinity Capital and Wingspire Equipment Finance.

Bankruptcy protection

B. Riley, a financial services firm that is also Core Scientific’s biggest creditor, supplied the firm $25 million in fresh financing and delayed terms of Core Scientific’s outstanding debt. 

Core Scientific filed for Chapter 11 bankruptcy protection on Dec. 21, 2022, citing up to 5,000 creditors, $10 billion in liabilities and $42.4 million owed to B. Riley. Though Core Scientific generated positive revenue, the inflow wasn’t enough to repay bitcoin mining equipment debt.

Источник