BlackRock And Other Ventura Capitals Help Bitcoin Core Scientific Mining Company

Core Scientific received assistance from venture capital firms. (Photo; Doc. Bitcoin World)

JAKARTA - BlackRock, one of the world's leading investment companies, has reportedly lent around $38 million to bitcoin US mining company Core Scientific. The company is seeking funding from raising led by several leading financial players, such as Apollo Capital, Kensico Capital, Ibex Investors, and others.

Core Scientific filed a bankruptcy protection application late last year, but continues to mine BTC to pay back debt holders.

According to court filings reported by Bloomberg, BlackRock and several other well-known investors have lent around $500 million to bitcoin mining company Core Scientific by buying guaranteed conversion debt securities.

Ibex Investors are the biggest contributors to the financing, lending nearly $100 million. BlackRock himself lent $38 million through the purchase of debt securities, while Apollo Capital Management bought US$22.6 million in debt securities and US$11 million in April and August.

The two asset managers provided a total of $23 million in debtor-in-owner loans to Core Scientific, so the company can continue to mine bitcoin despite financial problems.

The prolonged bearish market and the drop in major digital asset prices significantly cost crypto miners, who filed for bankruptcy protection Chapter 11 days before Christmas. Nonetheless, the entity saw its share price rise in the following weeks.

Despite the financial problems that led to bankruptcy filings and employee cuts, Core Scientific continues to mine bitcoin with stable results. In December, the company mined 1,435 BTC, nearly the same as the previous month's production.

In addition, Core Scientific also provides data center collocation services and operating support for 91,000 customer-owned ASIC servers, which generates 795 BTC in November and 931 BTC in December.

The company insists that its main facilities remain distributed in several US states and it is working with utility companies to ensure the stability of the power grid.