The company repaid massive liability using proceeds from a recent convertible notes offering.
It aims to expand its HPC hosting capacity and strengthen its Bitcoin mining business.
The
publicly listed Bitcoin (BTC) miner from Wall Street, Core Scientific (NASDAQ:
CORZ), has repaid $267 million in debt using proceeds from its recently closed
convertible senior notes offering.
Core Scientific Pays Down
$267 Million in Debt
The debt
repayment includes $150 million in secured notes, $61 million from an exit
facility, and $56 million in miner equipment loans. This move significantly
reduces the company's interest expenses, with rates dropping from as high as
12.5% on the prior borrowings to 3% on the new convertible notes.
Core
Scientific announced and priced an upsized convertible senior notes offering on
August 13–14, 2024. The company initially proposed a $350 million offering,
which was increased to $400 million of convertible senior notes due 2029.
After
repaying the debt and covering offering expenses, Core Scientific added $172.8
million in cash to its balance sheet. The company plans to use these funds to
support site acquisitions and initiatives in its high-performance computing
(HPC) hosting business.
“With this
transaction completed, we are moving forward with additional financial
flexibility to invest in the continued expansion of our HPC hosting capacity
while strengthening our Bitcoin mining business,” said
Adam Sullivan, CEO of Core Scientific.
An
increasing number of cryptocurrency miners are turning their attention to AI
and HPC, a trend corroborated by a recent analysis from investment management firm VanEck. This transition is
driven by miners' desires to diversify their operations and tap into the
burgeoning demand for AI computational power. According to VanEck's head of
digital assets research, Matthew Sigel, this strategic shift has the potential
to unlock $38 billion in value for the mining sector by 2027.
Notable
examples of this trend have been observable since last year. For example, HIVE
Blockchain has transitioned to HIVE Digital to more accurately represent
its expanded focus. While the company continues its activities in BTC mining,
it is now also enhancing its engagement with the HPC and AI sectors. In pursuit
of this strategy, HIVE Digital recently announced the construction of a new
hydroelectric-powered data center, a move expected to
double its revenue streams.
The
significance of HPC is also evident in the
latest quarterly report from another miner, BitFuFu. “Cloud-mining revenue
contributed approximately 60% of BitFuFu’s second-quarter revenue. Our
cloud-mining business enables us to effectively lock in the price of Bitcoin,
serving as a hedge against Bitcoin price volatility,” commented Leo Lu,
Chairman and Chief Executive Officer of the company.
Core
Scientific operates eight data centers across five states. The company
generates revenue primarily through Bitcoin mining for its own account and by
providing hosting services to third-party customers. The company is one
of the five largest publicly traded BTC miners on Wall Street, with a
market capitalization of $1.7 billion.
The
publicly listed Bitcoin (BTC) miner from Wall Street, Core Scientific (NASDAQ:
CORZ), has repaid $267 million in debt using proceeds from its recently closed
convertible senior notes offering.
Core Scientific Pays Down
$267 Million in Debt
The debt
repayment includes $150 million in secured notes, $61 million from an exit
facility, and $56 million in miner equipment loans. This move significantly
reduces the company's interest expenses, with rates dropping from as high as
12.5% on the prior borrowings to 3% on the new convertible notes.
Core
Scientific announced and priced an upsized convertible senior notes offering on
August 13–14, 2024. The company initially proposed a $350 million offering,
which was increased to $400 million of convertible senior notes due 2029.
After
repaying the debt and covering offering expenses, Core Scientific added $172.8
million in cash to its balance sheet. The company plans to use these funds to
support site acquisitions and initiatives in its high-performance computing
(HPC) hosting business.
“With this
transaction completed, we are moving forward with additional financial
flexibility to invest in the continued expansion of our HPC hosting capacity
while strengthening our Bitcoin mining business,” said
Adam Sullivan, CEO of Core Scientific.
An
increasing number of cryptocurrency miners are turning their attention to AI
and HPC, a trend corroborated by a recent analysis from investment management firm VanEck. This transition is
driven by miners' desires to diversify their operations and tap into the
burgeoning demand for AI computational power. According to VanEck's head of
digital assets research, Matthew Sigel, this strategic shift has the potential
to unlock $38 billion in value for the mining sector by 2027.
Notable
examples of this trend have been observable since last year. For example, HIVE
Blockchain has transitioned to HIVE Digital to more accurately represent
its expanded focus. While the company continues its activities in BTC mining,
it is now also enhancing its engagement with the HPC and AI sectors. In pursuit
of this strategy, HIVE Digital recently announced the construction of a new
hydroelectric-powered data center, a move expected to
double its revenue streams.
The
significance of HPC is also evident in the
latest quarterly report from another miner, BitFuFu. “Cloud-mining revenue
contributed approximately 60% of BitFuFu’s second-quarter revenue. Our
cloud-mining business enables us to effectively lock in the price of Bitcoin,
serving as a hedge against Bitcoin price volatility,” commented Leo Lu,
Chairman and Chief Executive Officer of the company.
Core
Scientific operates eight data centers across five states. The company
generates revenue primarily through Bitcoin mining for its own account and by
providing hosting services to third-party customers. The company is one
of the five largest publicly traded BTC miners on Wall Street, with a
market capitalization of $1.7 billion.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Kraken Argues Cryptos Are Not “Illegal Securities”: Seeks Jury Trial against SEC Lawsuit
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
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As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
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👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage.
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In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
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Ready to Scale? Regtech in Australia, A Global View | FMPS:24
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
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