Share this article
BlackRock Gives Bankrupt Bitcoin Miner Core Scientific New $17M Loan
BlackRock, which already was Core's largest shareholder, previously held $37.9 million of the miner's secured convertible notes.
By Aoyon Ashraf
Updated May 9, 2023, 4:05 a.m. Published Dec 30, 2022, 7:25 p.m.
Make us preferred on Google
Investment giant BlackRock (BLK) has committed $17 million to bankrupt bitcoin miner Core Scientific (CORZ) as part of a new $75 million loan from the miner's secured convertible note holders, according to a U.S. Securities and Exchange Commission filing that was filed on Thursday.
BlackRock, which is Core Scientific's largest shareholder according to FactSet data, already held $37.9 million in secured convertible notes as of Wednesday. The latest $17 million is part of the new $75 million convertibles notes, which are part of Core's prearranged bankruptcy process, the filing says. In a prearranged bankruptcy, the debtor reaches some sort of agreement with its creditors before officially filing for bankruptcy.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Core Scientific, the largest miner by computing power, filed for Chapter 11 on Dec. 21. The move comes as miners in general have been squeezed by high energy costs and low bitcoin (BTC) prices. Core noted that it expects support from some of its convertible noteholders in the form of two debtor-in-possession (DIP) facilities, totaling up to $75 million.
According to the restructuring plan, the secured debt convertible noteholders will get equity. The current equity and unsecured holders will get warrants so that as the company grows, they will get more shares, its chief mining officer, Russell Cann, told CoinDesk.
Read more: Inside Core Scientific’s Prearranged Bankruptcy
Out of the total $75 million, the lenders have already committed $57 million, including BlackRock's new loan, to the miner. The DIP facility has a maturity date of June 21, 2023 with terms to extend to Sept. 21, according to the new filing.
Shares of Core Scientific traded at 8 cents on Friday afternoon.
Core first warned of the risk of bankruptcy in late October and said it wouldn't be paying some of its loan installments, sending its shares plummeting about 80% on Nasdaq. In November, it reiterated that it may run out of money by the end of this year. Compute North, another major firm in the mining business, filed for Chapter 11 bankruptcy in late September. Crypto miner Argo Blockchain (ARBK) narrowly avoided bankruptcy after getting a $100 million bailout from Mike Novogratz’s Galaxy Digital this week.
BlackRock, Vanguard and Fidelity are among few of the TradFi giants that invested in bitcoin miners during the bull run as shares of publicly traded miners offered a faster way to get exposure to the sector, without having to buy bitcoin directly in the face of uncertain regulations.
Read more: Crypto Miners Face Margin Calls, Defaults as Debt Comes Due in Bear Market
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Michael Saylor's Strategy catches a break from MSCI, but analysts caution fight isn’t over yet
MSCI won’t drop firms like Strategy from indexes yet, but a broader rule change may still be on the table
What to know:
- Shares of Strategy rose 6% after MSCI decided not to exclude digital asset treasury firms from its indexes.
- The decision alleviates immediate pressure on companies holding large amounts of bitcoin but not directly operating in the blockchain sector.
- Analysts caution that the situation may not be resolved, as future MSCI rule changes could still impact firms like Strategy.
Top Stories
