Leading asset management firm BlackRock has loaned troubled Bitcoin miner Core Scientific $17 million to enable the company to continue its operations during its bankruptcy proceedings, Bloomberg reported Friday, citing a filing from the asset manager.
The latest loan is in addition to the $37.9 million secured convertible notes of Core Scientific held by BlackRock’s funds as of December 28.
BlackRock is an American multinational investment management firm. The firm has shown its enthusiasm for cryptocurrencies and recently linked its Aladin investment platform to Coinbase, allowing TradeFi investors to buy bitcoin.
Core Scientific Shows Prospects
Core Scientific has shown sustainability despite its bankruptcy. The miner filed for bankruptcy earlier this month, citing the sharp decline in bitcoin price, the rising cost of mining, and its $7 million exposure to crypto lender, Celsius.
The Bitcoin mining company shows it has $1.4 billion in assets compared to its $1.3 billion liabilities. This has attracted potential investors and ensured the firm access a fresh $37.5 million loan to fund its bankruptcy.
Core Scientific is also working on restructuring its debt and eliminating its current shareholders. The fresh loan also means it has lost $550 million in convertible notes to its new creditors. The debt has a 10% debt that is payable in kind.
Core Scientific Shares Soared 270% After Bankruptcy
The stock of Core Scientific rose over 270% after declaring bankruptcy. This was associated with a belief in the positive future of the company, according to Michelle Kimmel, a digital asset analyst at Coinshares.
The analyst spotted the difference in the company’s current state to the FTX capitulation, noting that the exchange weighed more in liabilities than in assets.
Core Scientific remains one of the biggest bitcoin miners in the world. The firm contribute nearly 10% of the computing power securing the Bitcoin network. The company thrived during the last bull run but failed to survive the recent BTC crash.
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