Core Scientific Closes $55 Million Equity Offering for Bitcoin Mining Operations
Bitcoin mining company Core Scientific has disclosed the outcomes of its $55 million Equity Rights Offering (ERO). The ERO, created to raise funds, experienced oversubscription, with total subscriptions surpassing the $55 million cap.
In a press release on January 8, the firm announced that the subscription period for the ERO concluded at 5:00 P.M Eastern Time on January 5, 2024.
The oversubscribed nature of the offering eliminated the need for the previously arranged ERO backstop funding, marking a significant milestone in the company’s journey towards emergence and re-listing.
With the ERO cap set at $55 million, any oversubscription will be allocated proportionally among participants who exercised their rights based on the shares of reorganized Core Scientific subscribed for.
Following proration and the maximum offering amount, excess payments made by oversubscription participants will be returned according to the company’s Rights Offering Procedures.
In response to the disclosed results, Core Scientific’s CEO, Adam Sullivan, expressed satisfaction, highlighting that the oversubscription reflects shareholders’ strong confidence in the company’s business and strategy.
Sullivan highlighted the successful rise and full repayment of previously drawn amounts on the company’s debtor-in-possession (DIP) financing, positioning Core Scientific strongly after emerging from its December 2022 Chapter 11 bankruptcy.
On January 5, 2024, Core Scientific published a comprehensive report providing updates on production and operations for both December and the entire year of 2023.
Core Scientific's December and Full Year 2023 #Bitcoin Production and Operations Update is out!
– Produced 1,177 self-mined bitcoin and an estimated
449 bitcoin
