Investment management company BlackRock has offered a $17 million loan to struggling bitcoin mining firm Core Scientific, according to a filing with the US Securities and Exchange Commission.
BlackRock, the largest shareholder in Core Scientific, already owns $37.9 million in secured convertible notes and is contributing to a new $75 million loan provided by the company’s secured convertible note holders.
Core Scientific, the largest bitcoin mining company in terms of processing power, filed for Chapter 11 bankruptcy in December due to rising energy costs and low bitcoin prices.
As part of the restructuring, holders of secured debt convertible notes will receive equity and current equity and unsecured investors will receive warrants to increase their shareholdings if the company grows.
The loan has an original maturity date of June 21, 2023, with the option to extend it to September 21.