BlackRock, a leading investment management company, has provided Core Scientific, a financially troubled bitcoin mining firm, with a loan of $17 million.
This loan is part of a larger $75 million loan provided by the company’s secured convertible note holders, of which BlackRock holds $37.9 million in secured convertible notes.
Core Scientific, the most powerful bitcoin mining company, filed for Chapter 11 bankruptcy in December due to increasing energy costs and a dip in bitcoin prices.
Investors in this company will receive equity and warrants to increase their shareholdings if the business grows, as part of the restructuring.
The loan has an initial maturity date of June 21, 2023, but may be extended until September 21.
