B. Riley Financial Inc., a financial service firm has offered to give Bitcoin Miner, Core Scientific a $72 million loan to offset its debt, so the firm will not file for bankruptcy. The investment bank claims that the injection of funds into Core Scientific is so that the firm can achieve profitability.
B. Riley wrote an open letter to the Mining firm that it strongly encourages Core Scientific’s Board of Directors to work quickly with creditors to reach a productive resolution for the benefit of all Core Scientific stakeholders.
Core Scientific had previously made an announcement that it was investigating measures for its capital structures. The Company even brought the option of possibly filing for bankruptcy. Since the announcement, the firm’s shares have declined by 86%. Additionally, the firm’s stock is currently trading at $0.15 per share, which represents a market capitalization of almost $50 million.
B. Riley claims that Core Scientifics’s financial issues are self-inflicted but believes it can be resolved in conjunction with continued communication and cooperation with its creditors and equity holders. Therefore, B. Riley stated that Core Scientific’s filing for bankruptcy remains unnecessary.
From B. Riley’s proposition, Core Scientific already has an outstanding loan of $42 million with the investment bank. Core Scientific secured a loan at the time when the firm had a misguided plan of adding mining equipment and power plants without ever hedging prices or selling any Bitcoin on the open market.
This decision, combined with the rapid maturation of the mining industry, has led the Company to its current position.
Support for the Ailing Blockchain Industry
B. Riley Financial is a financial services company that offers investment banking, research, sales and trading, and asset management. B. Riley provides services such as mergers and acquisitions advice, initial public offerings, and debt and equity financing.
B. Riley announced in September that it would host the Second Annual Crypto Conference held in New York.
The CEO of B.Riley Securities said the Conference showcases the firm’s approach to serving stakeholders across the crypto economy, with each of our participants representing a unique perspective on the evolving digital asset chain.
In yet another show of support towards ensuring the sustainability of the blockchain industry, LedgerX, a crypto trading platform said it was going to support the bankrupt FTX with $175 million to use for its bankruptcy proceedings.
