Core Scientific To Send 27k Mining Rigs To NYDIG To Settle $38.6 Million Debt
- The NYDIG has agreed to settle a debt of $38.6 million owed by Core Scientific Inc.
- The crypto mining firm will send 27,403 crypto mining rigs to NYDIG as part of the agreement.
- This deal will allow the bankrupt crypto miner to move forward with a credit line extended by B. Riley.
- The company’s share price tanked 28% following news of the deal.
The New York Digital Investment Group (NYDIG) is set to receive thousands of crypto mining rigs from Core Scientific Inc in exchange for waiving off a multi-million dollar debt. The debt dates back to October 2020 when the bankrupt crypto miner borrowed more than $75 million from the New York-based crypto investment group to purchase crypto mining equipment.
Core Scientific To Send 27,403 mining rigs to NYDIG
According to a filing made in the U.S. bankruptcy court for the southern district of Texas, Core Scientific reached an agreement with the NYDIG to send 27,403 mining rigs to the latter. As part of the deal, the NYDIG will dissolve an outstanding debt of $38.6 million owed by the bankrupt crypto miner. The agreement is subject to approval from the bankruptcy court.
Furthermore, the filing revealed that the value of the crypto mining rigs in question is considerably less than the amount owed to the NYDIG. Core Scientific’s lawyers stated in the document that the deal was in the best interest of their client.
This agreement will also ensure that Core Scientific’s recent deal with investment bank B. Riley for a $70 million credit facility will go ahead smoothly. The NYDIG had filed a reservation of rights letter with the court expressing its intention to object to the B. Riley deal, citing the crypto miner’s existing debt.
The crypto miner’s share price tanked more than 24% following the agreement with the NYDIG. The stock was initially trading in the green during pre-market trading but proceeded to decline after market open.