Investment firm BlackRock is among the largest creditors of bitcoin miner Core Scientific, which filed for Chapter 11 bankruptcy last week.
Its subsidiaries committed $17 million of the new $75 million loan the miner got from convertible notes shareholders as part of its prearranged bankruptcy deal, according to a document filed with the U.S. Securities and Exchange Commission on Thursday.
BlackRock already owned $37.9 million in secured convertible notes as of Dec. 28. The miner went public last year via a deal with a special purpose acquisition company (SPAC), with BlackRock serving as anchor investor.
Core Scientific's plans involve converting most of its debt into equity with the help of the bankruptcy court. The firm doesn't plan to sell off any machines or operating facilities but it is considering the sale of sites under development.
Core had about $1 billion in debt in October, mostly in the form of convertible notes.
Other major creditors include also bankrupt crypto lender BlockFi, investment banking firm B. Riley, crypto financial services firm NYDIG and Anchor Labs, the parent company of digital asset bank Anchorage Digital.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.