Core

2024

Bitcoin

Core Scientific, a leading Bitcoin mining and data center firm, announced plans to issue $350 million in convertible senior notes to address its outstanding debt obligations. The new notes, which are unsecured and senior in rank, are set to mature on September 1, 2029, with interest payable semi-annually. The exact interest rate and conversion terms are yet to be determined, according to <a href="https://theminermag.com/news/2024-08-13/core-convertible-bitcoin-debt/">Theminermag</a>. 
This move follows Core Scientific's recent mandatory conversion of $260 million in debt, resulting in a $14.7 million interest expense in Q2 2024. The company intends to use the proceeds from the new notes to repay loans from a January 2024 credit agreement and to redeem all of its senior secured notes due in 2028. Any remaining funds will support general corporate activities, including potential acquisitions and further securities repurchases. 
The announcement led to a 9.19% drop in Core Scientific's stock price during pre-market trading, signaling investor concerns. The move mirrors a similar action by competitor Marathon, which recently secured $250 million in convertible notes to fund Bitcoin acquisitions. Unlike Marathon, Core Scientific's focus remains on debt reduction and financial restructuring.

Core Scientific to Issue $350M in Convertible Notes

Ultramining_Eng

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