According to ChainCatcher, The Block reported that listed Bitcoin mining company Core Scientific announced on Tuesday that it plans to issue up to $350 million in convertible senior notes, which will mature in 2029. The day after the news was announced, the company's stock price (CORZ) fell by more than 10%.
The bonds will be offered in a private placement to qualified institutional buyers and may come with a provision requiring buyers to purchase an additional $52.5 million of the bonds. Investors can choose to hold the senior unsecured debt until maturity or convert it into equity. Interest is payable semi-annually.
“Core Scientific intends to use the net proceeds from this offering to repay in full its outstanding loan under its credit and security agreement dated January 23, 2024, and to redeem all of its outstanding senior secured notes due 2028,” the company wrote in a statement. The remaining funds will be used for “general corporate purposes,” including potential acquisitions.
