Core Scientific Announces $350 Million Convertible Notes Offering
CryptoNewsTerminal Staff13 Aug, 2024
Core Scientific Announces $350 Million Convertible Notes Offering
Core Scientific (Nasdaq: CORZ), a cryptocurrency mining company, plans to issue $350 million in convertible notes due 2029 in a private placement to institutional buyers. The proceeds from the offering will be used for general corporate purposes, including debt repayment. This announcement follows Core Scientific's recent report of a $804.9 million net loss for the second quarter. Despite this loss, the company remains optimistic about its long-term prospects in the cryptocurrency mining industry. Convertible notes are a hybrid security that combines features of both bonds and stocks. They offer investors the potential for capital appreciation if the company's stock price rises while providing a fixed income stream through regular interest payments. The offering is expected to close on or around August 15, 2023. Core Scientific believes that the proceeds from the offering will strengthen its financial position and allow it to continue investing in its growth initiatives.
