Summary:
Core Scientific announces a $350 million convertible senior notes offering.
Proceeds will primarily be used for debt repayment and corporate activities.
Notes can be sold privately to institutional investors with an option to expand by $52.5 million.
Partnership with Jack Dorsey’s Block for mining ASIC chips.
Core Scientific, Inc., a leading digital infrastructure provider for bitcoin mining, has announced its intent to issue $350 million in convertible senior notes. This strategic offering is set to close in September 2029, with the capital primarily allocated for debt repayment and other essential corporate needs.
Core Scientific Unveils Convertible Notes Offering, Eyes Debt Repayment
On Tuesday, Core Scientific outlined that the proceeds from this offering will be utilized to settle existing loans and redeem outstanding senior secured notes due in 2028. The notes will be sold privately to institutional investors, with the option to expand the offering by an additional $52.5 million. These unsecured notes will accrue interest semi-annually and are convertible into cash or common stock shares.
The firm also disclosed that remaining funds will support various corporate activities, including acquisitions and operational expenses. This announcement follows a similar move by Marathon Digital, now known as MARA, which recently revealed a private sale aimed at raising funds for bitcoin purchases. Additionally, Core Scientific has partnered with Jack Dorsey’s Block to acquire 15 exahash per second (EH/s) of Block’s mining ASIC chips.
Core Scientific’s strategy allows investors the option to request a repurchase of the notes if certain key changes occur within the company. The firm can also redeem the notes under specific conditions. This financial maneuver is part of a broader strategy to optimize its capital structure while maintaining financial agility.
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