• Core Scientific, a publicly traded miner, has secured $72 million in loan financing from B Riley.
• The loan is intended to provide two years of runway before the company anticipates profitability.
• Despite recent headwinds, B Riley believes that bankruptcy is not necessary.
Core Scientific, a publicly traded miner, has recently secured a $72 million loan from their lender, B Riley. This loan is intended to provide two years of runway before the company anticipates reaching profitability. Despite the company having faced various headwinds in recent months, such as halting all debt service payments, the sale of over a thousand bitcoins, and claims that Celsius owes them $5.4 million, B Riley still believes that bankruptcy is not necessary.
The lender released a statement which detailed how, “We believe that there is a path forward and have been proactive in working through a solution, specifically by providing debt on a number of unencumbered assets.” This particular loan is in addition to the existing $42 million loan that Core Scientific has with B Riley. The lender stated that the previous loans were made when the price of Bitcoin was higher and the theoretical payoff on miners was faster, leading to the company’s current financial position.
Despite the troubles that Core Scientific has been facing, B Riley still believes that bankruptcy is not necessary and that the new loan will provide the company with the financial runway they need to become profitable. The lender is confident that with this loan and the right strategy, Core Scientific can still be successful in the future.
The lawsuit that was filed last week by Kirby McInerne LLP will be an obstacle that Core Scientific will have to overcome, but B Riley is hopeful that with the new loan, the miner will be able to weather the storm. Time will tell if this loan will be enough for Core Scientific to turn their fortunes around, but for now, the miner is still in a precarious position.