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BlackRock backs insolvent Bitcoin miners

Using a debt facility, BlackRock plans to provide financial support to the insolvent mining company Core Scientific.

By Mike Hesp
• 2 min read
BlackRock backs insolvent Bitcoin miners

Using a debt loan, BlackRock plans to provide financial support to the insolvent mining company Core Scientific.

The world's largest asset manager, BlackRock, has agreed to provide a $17 million debt loan to the insolvent Bitcoin miner Core Scientific. This is outlined in a filing with the SEC.

According to the filing, these are convertible bonds issued by the company. They come with an option to convert, giving the holder the right to swap the bond for shares in the issuing company at a fixed price.

According to the filing, BlackRock is the largest shareholder of Core Scientific. The asset manager already owns $37.9 million in secured convertible bonds. The additional $17 million BlackRock plans to invest is part of the pre-arranged insolvency process for the miner, he adds.

Measured by hashrate, the publicly traded company is one of the world’s biggest Bitcoin miners. With Bitcoin’s price down and energy costs rising at the same time, mining companies are coming under increasing pressure. mining companies are under increasing pressure.

BlackRock isn’t new to the crypto space. With Coinbase, the asset manager lets its clients trade Bitcoin.

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