Core Scientific cuts deal with lender NYDIG to extinguish $38.6 million in debt
Crypto miner Core Scientific reached a deal with NYDIG amid its ongoing bankruptcy to pay down its $38.6 million loan by handing over roughly 27,403 machines used as collateral.
The company said the deal would be beneficial as those rigs are “no longer necessary” for its “current operations and future business plans” in a motion filed Thursday seeking approval from the U.S. Bankruptcy Court for the Southern District of Texas.
“The principal of the NYDIG Debt exceeds the value the ASICs Collateral,” it said. “The ASICs Collateral consists of older models of Miners, which have lower hash rates compared to newer models, such as S19 XP Miners.”
The value of most machines went down more than 80% last year.
The company is also “considering opportunities to sell certain of their mining facilities,” which would limit rack space.
Up to 1 gigawatt of facilities could potentially be up for sale, Russell Cann, chief mining officer, told The Block in December.
In a hearing this week, Core Scientific saw its deal for a $70 million loan from B. Riley approved by a judge.
The new deal will provide “up to 15 months of runway and significant flexibility” since it has no “plan-related milestones and is not conditioned on seeking approval of any specific Chapter 11 plan,” the motion said.
Representatives of the company said during a bankruptcy court meeting Wednesday that its cashflow has “significantly” improved since filing for bankruptcy in December.
