Cryptocurrency

Core Scientific raised $500M from BlackRock, Apollo and others

BlackRock and Apollo Capital Management were among a group of creditors that lent $500 million to bankrupt cryptocurrency miner Core Scientific. filing show.

Core Scientific, which filed for Chapter 11 bankruptcy last month, raised a huge amount of debt to expand its business and failed to lend when Bitcoin (BTC) prices fell last year.

BlackRock purchased $38.2 million convertible notes from Core Scientific in August 2021. Meanwhile, Apollo said that in April 2021 he purchased $22.5 million worth of convertible notes and in August 2021 he purchased another $10.9 million convertible notes.

The largest creditor is Ibex Investors, which purchased $97.9 million worth of convertible notes from Core Scientific in April 2021. In the same month, Miner used convertible notes to raise $61.7 million and $37.6 million from ICG Advisors and Kensico Capital Management respectively.

In August, miners took another $4.3 million from Kensico, $23.5 million from Marsico and $43.6 million from Massachusetts Mutual Life Insurance Company (MMLIC). In the same month, Miner sold his convertible shares worth $28.9 million, $31.1 million and $2.7 million to Toroso Investments, Jordan Park Group and Sabby Volatility Warrant Master Fund respectively.

Core Scientific also raised $15.29 million through convertible notes from Corbin Capital Partners, filings show.

Many of these creditors also provided Core Scientific with Debt Ownership (DIP) loans, which allowed the miners to continue operating even in bankruptcy.

Ibex, BlackRock, and Apollo provided DIP loans of $10.1 million, $17 million, and $6.1 million, respectively, to the deceased miners. MMLIC, Sabby, Jordan and Corbin have collectively provided an additional $24 million in DIP loans, documents show.

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