Aug 15, 2024, 1:07 PM
Aug 14, 2024, 4:20 AM

Core Scientific Raises $400 Million in Convertible Notes

Highlights
  • Core Scientific, Inc. announced the pricing of $400 million aggregate principal amount of convertible senior notes.
  • The notes are due in 2029 and have a 3.00% interest rate.
  • This financial move indicates a significant investment in digital infrastructure for bitcoin mining and high-performance computing.
Story

Core Scientific, Inc. (NASDAQ: CORZ), a prominent player in digital infrastructure for bitcoin mining and high-performance computing, has announced the pricing of a private offering of $400 million in 3.00% convertible senior notes due in 2029. This offering is aimed at qualified institutional buyers under Rule 144A of the Securities Act of 1933. The initial conversion price is set at a premium of approximately 30% over the last reported share price of $8.46 as of August 13, 2024. The notes will be redeemable at Core Scientific's discretion starting September 7, 2027, contingent upon certain conditions, including the stock price exceeding 130% of the conversion price for a specified duration. The company anticipates net proceeds of around $386.6 million from the offering, which could rise to approximately $445 million if the initial purchasers fully exercise their option to buy additional notes. Importantly, the notes and any shares issued upon conversion will not be registered under the Securities Act or other securities laws, meaning they can only be offered or sold under specific exemptions. This announcement does not constitute an offer to sell or solicit offers to buy the notes or shares in jurisdictions where such actions would be illegal. Core Scientific has issued forward-looking statements regarding the offering's expected closing and the intended use of proceeds, acknowledging that actual results may differ due to various risks and uncertainties. The company emphasizes that these statements are based on current management expectations and assumptions, which may not hold true.

Opinions

You've reached the end