Investment firm BlackRock is among the largest creditors of Core Scientific, which has filed for bankruptcy.
The bitcoin mining firm filed for Chapter 11 bankruptcy last week.
BlackRock, One of the Biggest Creditors
According to a document submitted to the U.S. Securities and Exchange Commission the other day, the company committed $17 million of the last $75 million loan the mining company received from convertible bond shareholders as part of a previously arranged bankruptcy settlement.
BlackRock had $37.9 million in collateralized convertible bonds as of December 28. Core Scientific went public in a deal with SPAC, a special-purpose acquisition company in which BlackRock serves as the main investor.
Core Scientific’s plans include turning a large portion of its debt into equity with the help of the bankruptcy court. While the firm does not intend to sell any machinery or operating facilities, it does plan to sell operating sites under development.
The company had approximately $1 billion in debt last October, mostly in the form of convertible notes.