bold bet – BlackRock is among the investors who have bet millions of dollars on the mining company Core Scientific, now bankrupt. Theoretically, this risk can only be rewarded if the mining company manages to find enough liquidity to be able to function normally again.
BlackRock invests $500 million in BTC mining
Citing a court filing, the January 24 Bloomberg article indicates that BlackRock is among the investors who have loaned approximately $500 million to Core Scientific, by purchasing its secured convertible notes last year.
In August, BlackRock lent $38 million to the mining giant via funds and accounts that its subsidiaries manage. And the asset manager continued to support Core Scientific, before the company does not file for bankruptcy in the month of December.
Following an agreement reached with the mining company before it officially filed for Chapter 11 bankruptcy protection, BlackRock granted $17 millionars in the form of convertible notes guaranteed to Core Scientific, to save it from drowning.
These convertible notes may be converted into sharesif the mining giant manages to overcome its current financial difficulties.
>> Expose yourself to Bitcoin on Binance, 10% fee reduction with this link (commercial link) <<
Can Core Scientific get out of bankruptcy, and make BlackRock win its bet?
Bitcoin’s rally at the start of the year could improve the financial situation of mining companies like Core Scientific, which could take advantage of this rise to sell for profit some or all of their BTC holdings. Cryptocurrency is currently registering a gain of nearly 39%compared to its opening level in January.
Core Scientific did not wait for this strong bullish rebound, to explore other options that would allow it to replenish its cash flow. The mining company sued the bankruptcy court for the Southern District of Texas, in order to get rid of celsius mining machineswhich Core Scientific hosts.
The bankrupt crypto lending company were no longer paying its invoices related to these hosting services. Core Scientific claimed that this payment default cost it $2 million potential income each month. This shortfall could be avoided by unplugging Celsius’s machines, and hosting miners from other solvent companies in their place.
The crypto winter has put the finances of the mining giants in the red like Core Scientific. The support of investors like BlackRock, the strong bullish recovery of Bitcoin during this month of January, and the other restructuring measures, will they be enough to resuscitate the company’s cash flow?
The fall in prices also affects miners. Take advantage of current market conditions to quietly accumulate Bitcoin. Register quickly on the Binance platform, THE absolute benchmark in the sector. You will save 10% on your trading fees by following this link (trading link).