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According to court documents, Bitcoin mining company Core Scientific filed a petition on January 25 to sell its Bitmain coupons worth $6.6 million.
As per the filing, certain restrictions placed on the vouchers have rendered them unusable for Core Scientific’s activities. In particular, the coupons can not be swapped with Bitmain for cash and can only be used to pay 30% of any new purchase of S19 miners from Bitmain.
The company stated:
“The Debtors do not believe that utilizing their liquidity to purchase new S19 Miners, even with the availability of the Bitmain Coupons, is the best use of the Debtors’ cash.”
Additionally, the Bitmain coupons are set to expire in March or April 2023, when the business expects to have exited its Chapter 11 bankruptcy event.
Core Scientific has been speaking about the motion with Bitmain and two other parties who would be interested in purchasing the vouchers at a considerable discount. The sales of the Bitmain coupons totaling $1.9 million for $285,000 and $4.8 million for around $713,000 total 15% of the face value of the coupons.
Core Scientific further stated that “while the aggregate purchase price of approximately $1.0 million would represent a significant discount to the approximately $6.7 million face value of the Bitmain Coupons, it would also represent significant value above what these Bitmain Coupons are worth to the Debtors and their estates: zero.”
Core Scientific Filed for Bankruptcy in 2022
Notably, Core Scientific disclosed that it was seeking bankruptcy protection because of the company’s poor earnings and the low price of bitcoin.
The mining corporation blamed the company’s underwhelming financial performance on the high cost of power and mining equipment.
A recent article claims that by purchasing the mining company’s secured convertible notes, BlackRock and a bunch of other prominent investors enabled Core Scientific to obtain a loan of roughly $500 million.
The post Core Scientific to Sell Over $6M in Bitmain Coupons appeared first on Blockchain, Crypto and Stock News.
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