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Home » BlackRock Committed $17 Million In Loan To Keep Miner Running

BlackRock Committed $17 Million In Loan To Keep Miner Running

  • Crypto
Source : techstory

BlackRock Inc. is among a group of creditors that lent money to Bitcoin miner Core Scientific Inc. so it can continue to operate while it’s in bankruptcy, according to a filing from the asset manager.

BlackRock has committed $17 million of a debtor-in-possession loan through funds and accounts managed by its subsidiaries. The funds managed by the firm also held $37.9 million in secured convertible notes of Core Scientific as of Dec 28, according to the filing.

The Austin, Texas-based crypto-mining company filed for bankruptcy last week and got access to $37.5 million of fresh cash from a group of creditors that holds most of the company’s more than $550 million of convertible notes. That debt has an interest rate of 10% that’s payable in kind.

Core Scientific is one of the largest Bitcoin miners, contributing nearly 10% of the computing power to secure the entire Bitcoin network. It is among a handful of public miners that raised millions from debt financing during the last bull run but struggled to stay afloat as the crypto market crashed and electricity costs skyrocketed.

The article originally published on Bloomberg.