Core Scientific creditors propose a $72 million financing plan to avoid bankruptcy

ChainCatcher news, one of the largest creditors of the Bitcoin mining company Core Scientific, B. Riley Financial, has proposed a $72 million financing plan to avoid Core Scientific's bankruptcy. According to a letter from B. Riley to Core Scientific shareholders, "providing $72 million in new non-cash compensation financing on favorable terms gives the company more than two years to achieve profitability," and they are willing to immediately provide $40 million of that funding.

B. Riley believes there is no need for bankruptcy at all, stating that Core Scientific's financial issues "are self-inflicted and can be corrected through open, transparent discussions and ongoing engagement with creditors and shareholders."

According to previous reports, Core Scientific warned in October that if the company could not find additional funding to repay its over $1 billion debt, it might have to seek bankruptcy protection. (source link)