Mining company Core Scientific announced plans to issue $350 million in convertible senior notes

ChainCatcher news, according to The Block, publicly listed Bitcoin mining company Core Scientific announced on Tuesday plans to issue up to $350 million in convertible senior notes, which will mature in 2029. The day after this announcement, the company's stock price (CORZ) fell by more than 10%.

These bonds will be issued in a private placement to qualified institutional buyers and may include a provision requiring buyers to purchase an additional $52.5 million in bonds. Investors can choose to hold the senior unsecured debt until maturity or convert it into stock. Interest will be paid semi-annually.

The company stated in a press release: "Core Scientific intends to use the net proceeds from this offering to fully repay its outstanding loans under the credit and guarantee agreements entered into on January 23, 2024, and to redeem all of its outstanding senior secured notes due in 2028." The remaining funds will be used for "general corporate purposes," including potential acquisitions.