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Top TF Institutions Fund Crypto Miner Core Scientific

Top TF Institutions Fund Crypto Miner Core Scientific

Top traditional finance institutions lent Core Scientific millions of dollars, allowing the cryptocurrency miner to thrive and expand its operations. 

According to a court filing published on Jan. 18, BlackRock and Apollo Global Management are among a group of creditors who lent the miner $500 million by purchasing its convertible notes. Bloomberg broke the story on Tuesday. 

According to the report, the miner was able to raise capital after BlackRock purchased $38 million in convertible notes through subsidiary-managed accounts in August 2021. Between April and August of that year, Apollo acquired $33.6 million. 

They also contributed $17 million and $6.1 million to debtor-in-possession financing (DIP) last year, allowing Core Scientific to continue operating during bankruptcy. 

Gullane Capital, multi-strategy investment firm Ibex Investors, and ICG Advisors were among the creditors, referred to in the court filing as an “ad hoc group of DIP financing lenders.”

“The Ad Hoc Group members are either beneficial owners of or investment advisors or managers of funds and/or accounts that have disclosable economic interests in relation to Core Scientific,” according to the filing. 

MassMutual, Corbin Capital Partners, Jordan Park Group, Kensico Capital Management, Marsico, Sabby Volatility Warrant Master Fund, and Toroso Investments are also holders of Core Scientific notes. 

Ibex was the largest creditor, lending Core $97.9 million in April 2021 and another $10.1 million towards the DIP loan. 

Core Scientific declared bankruptcy last month after warning that its cash reserves would be depleted by the end of 2022. Crypto miners struggled last year as energy prices rose and broader macro trends influenced crypto asset prices. 

Earlier this month, the miner decided to free up hosting space by terminating its relationship with bankrupt crypto lender Celsius.

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