Core Scientific, a major Bitcoin mining firm that filed for bankruptcy, has closed a $55 million equity offering as it plans to exit Chapter 11 in January 2023. The company, which went public in 2021, expects to relist on the Nasdaq following its restructuring and return to solvency.After fully repaying its $35 million debtor-in-possession (DIP) financing loan, Core Scientific is in a strong position to continue its growth plans. The firm’s restructuring plan anticipates a clean balance sheet with $709 million in net debt and $791 million in shareholder equity.Shareholders will receive new shares at a 25:1 conversion ratio, equating to $1.08 per pre-exchange share, while convertible noteholders will see recovery rates between 120% and 162% of face value on existing debt notes.
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0 posts last weekCore Scientific Raises $55M, Prepares to Emerge from Bankruptcy
Core Scientific, a major Bitcoin mining firm, has closed a $55 million equity offering as it plans to exit Chapter 11 bankruptcy. The company, which went public in 2021, expects to relist on the Nasdaq following restructuring and return to solvency.After repaying its $35 million debtor-in-possession financing loan, Core Scientific is set to finalize bankruptcy proceedings with enhanced liquidity. The firm’s restructuring plan anticipates a clean balance sheet with $709 million in net debt and $791 million in shareholder equity.Shareholders will receive new shares at a 25:1 conversion ratio, while convertible noteholders will obtain recovery rates between 120% and 162% of face value on existing debt notes.
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