According to Odaily, Core Scientific, a publicly traded Bitcoin mining company, announced on Tuesday its plan to issue up to $350 million in convertible senior notes due in 2029. Following this announcement, the company's stock (CORZ) dropped by over 10% the next day. These bonds will be issued in a private placement to qualified institutional buyers and may include an option for buyers to purchase an additional $52.5 million in bonds. Investors have the option to hold the senior unsecured debt until maturity or convert it into stock. Interest will be paid semi-annually.
In a statement, Core Scientific mentioned, 'Core Scientific intends to use the net proceeds from this offering to fully repay its outstanding loans under the credit and security agreement dated January 23, 2024, and to redeem all of its outstanding senior secured notes due 2028.' The remaining funds will be used for 'general corporate purposes,' including potential acquisitions.
Previously, Core Scientific released its Q2 financial report for the fiscal year 2024, highlighting the following key points: a net loss of $804.9 million compared to a net loss of $9.3 million in the same period in 2023; total revenue of $141.1 million, up from $126.9 million in 2023; operating income of $6.6 million, down from $9.5 million in 2023; and adjusted EBITDA of $46 million, slightly up from $45 million in 2023.