![BlackRock Lends $17 Million To Bankrupt Bitcoin Miner Core Scientific](https://btctimes.s3.amazonaws.com/Black_Rock_Lends_17_Million_To_Bankrupt_Bitcoin_Miner_Core_Scientific_b387791bfa.jpg)
According to a filing with the U.S. Securities and Exchange Commission (SEC) made on December 30th, 2022, investment juggernaut BlackRock (BLK) pledged $17 million to bankrupt Bitcoin miner Core Scientific (CORZ) as part of a new $75 million loan from the miner’s secured convertible note holders.
BlackRock is currently the largest shareholder in Core Scientific and as of December 29th, the company had $37.9 million in secured convertible notes. The filing states that the most recent $17 million loan is part of the new $75 million convertible notes that are a part of Core Scientific’s scheduled bankruptcy process.
During most prearranged bankruptcies, an agreement between the debtor and its creditors may be reached before the case is formally filed.
The largest miner in terms of hash power, Core Scientific, filed for Chapter 11 on December 21st. The decision was made at a time when miners were generally dealing with high electricity costs and low Bitcoin (BTC) prices.
In the form of two debtor-in-possession (DIP) facilities totaling up to $75 million, Core Scientific stated that it anticipates help from various holders of its convertible notes. These holders will receive equity under the restructuring plan.
According to the company’s chief mining officer, Russell Cann, the current equity and unsecured investors will receive warrants so that when the company grows, they will receive more shares.
Out of the total $75 million, lenders have already given Core Scientific $57 million, including the latest loan from BlackRock. The filing states that the DIP facility has a maturity date of June 21st, 2023, with terms to extend the date to September 21st, 2023 if needed.