Core Scientific's creditors, B. Riley Financial, has offered the crypto mining giant a $72 million non-cash payment as the company is trying to prevent bankruptcy.
In a press release, the creditor said that the deal was proposed on "favorable terms," providing the company with enough capital to achieve profitability. B. Riley Financial said:
"This is a far superior approach for all constituents, one that would avoid bankruptcy while preserving meaningful value for all of Core Scientific's stakeholders."
Currently, Core Scientific has around $300 million worth of equipment and other loans. The creditor claims that these loans were made when the price of bitcoin (EXANTE: Bitcoin) was "significantly higher than it is today and the theoretical payoff on miners was significantly faster."
B. Riley Financial also believes that Core Scientific's debts are the result of an aggressive, "ill-conceived strategy" focused on building out power facilities and expand miners while never selling bitcoin on balance sheet.
The parties are yet to discuss the proposal.
