Core Scientific, the second-largest publicly listed bitcoin miner, is expected to receive equity stakes from the world’s largest bitcoin mining rig maker, Bitmain, and crypto platform Anchorage Digital as part of its bankruptcy. According to court documents filed Tuesday, Core Scientific will buy 27,000 units of Bitmain Antminer S19j XPs for $77.1 million, with $23 million in cash and $54 million in equity in the company once the plan is effective. This is likely Bitmain’s first stake in a publicly listed miner. Anchorage Digital, which had a $29 million loan as of the bankruptcy date, is expected to pick the equity option.
Companies that have lent funds to Core Scientific to buy equipment can elect to either have their claims converted into equity fully, or take on secured debt in the emerging company at 80% of the value of their claims, according to the document. Core Scientific is also in negotiations for a $55 million equity rights offering for current holders of common stock. Investment bank B. Riley, which lent $70 million to Core Scientific to fund the bankruptcy costs, will convert the outstanding balance of that loan to a delayed term loan and provide an additional $25 million in new financing.
The amended reorganization plan is subject to a vote by creditors, while many of the settlements described require court approval. Core Scientific is negotiating a settlement with lender Foundry to fully recover Foundry’s claim and is awaiting court approval on a number of settlements with equipment and services providers.