Texas-based Bitcoin mining company Core Scientific has announced the pricing of its increased offering of $400 million in 3.00% convertible senior notes due in 2029. Initially, the offering was $350 million, but it has been upsized due to favorable market conditions.
Offering Details
According to the official press release, these unsecured notes, accruing interest semi-annually, will mature on September 1, 2029, unless previously converted, redeemed, or repurchased. The notes will be issued privately to qualified institutional buyers. The initial buyers will be granted an option to acquire an additional $60 million in notes.
Bankruptcy and Recovery
Core Scientific filed for bankruptcy protection in December 2022 after a crypto market downturn and the failure of partner Celsius. After a bankruptcy court approved its Chapter 11 restructuring plan in January, the firm shed $400 million in debt and continued operations. Since its return to the stock market, its price has increased by 145% to $8.46 per share on the Nasdaq.
Focus on Artificial Intelligence
Core Scientific's shift towards artificial intelligence was crucial. For instance, the mining company disclosed a larger agreement valued at $6.7 billion with CoreWeave, a startup backed by Nvidia and a key chipmaker’s AI model technology supplier. Core Scientific will supply an extra 112 megawatts of computing power to boost CoreWeave’s operations.
Core Scientific is actively strengthening its market position, expanding securities offerings, and investing in new technologies such as artificial intelligence. This allows the company to adapt to changing market conditions and continue its growth.
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