advice b. Riley believed that the problems of struggling miners were “self-imposed” and offered them ways to avoid losses.
B. Riley presents the Bitcoin Financial Services Platform
BTC is the right one
under the wrinkles
$16,842
Miner Core Scientific is 72 million dollars to avoid losses and protect the interests of the owners of Core Scientific.
And I’m not. Riley, Core Scientific’s largest lender, currently with $42 million, outlined the terms of the financing agreement in a letter dated Dec. 14, saying it agreed to spend $ The first 40 million will happen “immediately, without any unforeseen circumstances”.
The fund said the remaining $32 million comes from suspending all payments to BTC miners to equipment lenders if the price of bitcoin falls below $18,500.
Bitcoin last rose above $18,500 on November 9 before falling more than 14% in one day.
B. Riley gave a critical assessment of Core Scientific’s situation, saying that “the company has applied bad strategies and logic […] to continue building power plants and expanding the mining industry.” k’ not selling Bitcoin and keeping the price “. “.
He noted that the scheme forced Core Scientific to sell 9,618 BTC worth $362 million in April, a huge loss for miners.
Core Scientific admitted in its quarterly report filed on November 22 that it will not have enough cash until 2023. It also said it had doubts about the possibility of raising funds through the fund. or bonds.
On October 26, the company cited the price of bitcoin, rising electricity costs and a refusal to repay a $2.1 million loan from cryptocurrency lender Celsius as reasons for the difficulties. financial.
Riley seemed confident that Core Scientific would accept the financing offer, reminding the mining company of its responsibilities to shareholders, noting:
“In our view, allowing a Section 11 filing would be a clear violation of the fiduciary duty owed to the board and the board of directors – which we believe are putting their interests before their own.”
Since the beginning of 2022, the Core Scientific share has fallen 97.7% from 11.02 to 0.25.
Core Scientific’s stock price history on the Nasdaq. Source: Business Commentary
Source: CoinTelegraph
Source: CoinTelegraph
