Core Scientific Restructuring Plan Includes Equity Stake For Bitmain and Anchorage
The world's largest mining machine maker is set to take a $54 million stake in Core Scientific in exchange for 27,000 S19j XP Miners and $23 million in cash as the miner emerges out of Chapter 11 proceedings.
- Bitcoin mining rig maker Bitmain and crypto custody firm Anchorage Digital may take equity stakes in Core Scientific (CORZ) as part of Core's restructuring plan.
Bitmain plans to sell Core Scientific 27,000 S19j XP Miners for a total of $77.1 million. The purchase will be funded by $23 million in cash and $54 million in company equity, per August 8 filing with the United States Bankruptcy Court for the Southern District of Texas.
- Anchorage Digital, which had a $29 million loan as of the bankruptcy date, is expected to convert its claims into equity, too.
- If the plan is approved by creditors, it may be the first Bitmain's stake in a publicly listed miner.
- Other lenders, including "Mutual Asset Finance, Barings, BlockFi, 36th Street Capital Partners and Trinity Capital, which together held about $193 million in loans to Core Scientific as of the Petition date, are expected to opt for secured debt," CoinDesk reported.
- Core Scientific filed for Chapter 11 bankruptcy in December 2022.
