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

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BTC miner Core Scientific gets interim nod for $37.4M bankruptcy loan
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Core Scientific has been given the go-ahead for a $37.5 million loan from creditors to support it through its restructuring process.

) 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 forIn a public statementon 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 facility commitment loans up to a total of $75 million, according to court filings.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. 23In the initial DIP budget however, it was forecasted to apply for $12.5 million by Jan. 21.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., 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.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.

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