Business
Core Scientific Strengthens Balance Sheet and Supports Growth Plans with Proceeds from Recent Convertible Notes Offering
Repays $267 million in debt, reducing interest rate from approximately 12.5% to 3% Removes restrictive covenants associated with certain notes Increases cash
About this update from Core Scientific, Inc.
[{"type":"text","content":"\n\nRepays $267 million in debt, reducing interest rate from approximately 12.5% to 3%\n\n\n\nRemoves restrictive covenants associated with certain notes\n\n\n\nIncreases cash on hand to fund site acquisitions for HPC hosting growth\n\n\n\n AUSTIN, Texas--(BUSINESS WIRE)--\nCore Scientific, Inc. (NASDAQ: CORZ) (“Core Scientific” or the “Company”), a leader in digital infrastructure for bitcoin mining and high-performance computing, today announced it has repaid a total of $267 million in debt with proceeds from its offering of convertible senior notes first announced on August 13, 2024, which closed on August 19, 2024.\n\n\nThe Company repaid $150 million in secured notes, $61 million in an exit facility and $56 million in miner equipment loans, in addition to interest and other fees. Interest rates on the prior borrowings were as high as 12.5% as compared to 3% for the new convertible notes. Net proceeds from the offering after all payments (including commissions and estimated offering expenses) totaled $172.8 million, significantly increasing cash on hand available for site acquisition and other growth initiatives.\n\n\n“Our recent convertible note issue represents another key step in our commitment to strengthen our balance sheet and position Core Scientific for future growth,” said Adam Sullivan, Core Scientific’s Chief Executive Officer. “With this transaction completed, we are moving forward with additional financial flexibility to invest in the continued expansion of our HPC hosting capacity while strengthening our bitcoin mining business. We will continue to take steps to bolster our financial foundation as we execute our growth strategy to create value for our shareholders.”\n\n\nAbout Core Scientific\n\n\nCore Scientific is a leader in digital infrastructure for bitcoin mining and high-performance computing. We operate dedicated, purpose-built facilities for digital asset mining and are a premier provider of digital infrastructure, software solutions and services to our third-party customers. We employ our own large fleet of computers (“miners”) to earn bitcoin for our own account and provide hosting services for large bitcoin mining and high-performance computing customers at our eight operational data centers in Georgia (2), Kentucky (1), North Carolina (1), North Dakota (1) and Texas (3). We derive the majority of o...