Black Rock Loans Core Scientific $17 Million – 233

BlackRock gives bankrupt Bitcoin minor Core scientific and new 17 million Dollar loan We've talked about this a lot when it Comes to Bitcoin mining what is the Number one problem with Bitcoin Mining right specifically the hardware Um actually The hardware was originally specifically The only problem right because you had a Single company essentially at the very Beginning bit main manufacturing the Miners mining on themselves until they Developed a new minor than selling the Old miner and then just having a Competitive advantage on the network Right this was obviously a huge problem Plus Made it absolutely impossible for the Average human being or the average Worker to ever get into it I mean this Is kind of the problem with almost Everything in life it's always funny That we get these kind of you know work Hard and and do what I did and you'll Make tons of money and then you find out That they had a 250 000 investment to to From their parents to do something You're like okay cool dude glad you Worked hard glad you got that initial Investment and it worked out for you but There's a whole bunch of other people Over here that are living like hand to Mouth is not going to work for them

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Right so why was why was mining ethereum Such an amazing opportunity for people Was because you could do it on a GPU and Yes even with the increase of cost for The GPU due to the demand for them it Was still Within Reach of the average Consumer which meant you could actually Start participating in the the ecosystem Like the economy in the manner in which Everybody always preaches to you which Is buy assets that generate income okay Almost everybody can understand that and Start generating income but the barrier To entry so far away for a lot of people And that is what made Basically Mining with gpus is so enticing Especially to me that's why I wanted to Teach everybody because it's like hey Look there's this thing that can take us From level one to level two and then Maybe we can start moving on to other Things right this was what the the Principle was but then you start like Seeing obviously with Bitcoin this get Locked down into into individual Companies and the barrier to entry gets Astronomically high right then you're Like okay well the price of it's come Down but at the same time now the price Of power for the general consumer across The board Has increased to the point to where you Basically have to own a power company or

Have be utilizing so much power that you Can negotiate a power agreement that Actually is profitable which means you Have to have also the money to invest in All the miners that are going to utilize That power and you have this kind of Weird situation where between and then We'll get into the third one but between The power costs and the restricted Access to the hardware Bitcoin mining Becomes nearly impossible to get into You add the trifecta here which is of Course Kickbacks in places like the State of Texas for turning off your Miners to of course people that utilize A certain amount of power and then Texas Takes the payback that they give them During the summer and they charge the General consumer Right the little guy and you got this Trifecta of BS that you can't you just Can't get around right and and it's it's Pretty intense when you look at it the Amount of investment that has to go into It and even still these Bitcoin mining Companies with all of the advantages in The world Fail because of their greed right and We've talked about this before is Bitcoin basically designed in a manner That forces greed to fail because of the Having cycle right you have the price go Way up the price of the miners go up and What happened is all the Bitcoin miners

The ordered a bunch of mining machines At a inflated cost And they didn't get shipped till later And then basically the assets didn't Meet the value of the loan which put Them in a compromised position and you Go okay well maybe not too big to fail Right but as you know with the banks and Everything else in this entire world too Big to fail is too big to fail and large Companies get bailed out and that is What's happening here now we have BlackRock Giving Bitcoin minor core scientific a 17 million dollar loan it already was Core's largest shareholder it held 37.9 Million dollars of the miners secured Convertible notes And the Investment Bank BlackRock has Committed 17 million dollars hold on Quick cough uh 17 million dollars to Bankrupt Bitcoin minor core scientific As part of a new 75 million dollar loan From the minor secured convertible note Holders according to the U.S Securities And Exchange Commission filing That was filed on Thursday BlackRock Which is core scientific's largest Shareholder according to factset data Already held 37.9 million dollars in Secured convertible notes as of Wednesday the latest 17 million dollar Is part of it the new 75 million dollar Convertible notes which are part of

Core's pre-arranged bankruptcy process The filing says in a pre-arranged Bankruptcy the debtor reaches some sort Of agreement with its creditors before Officially filing for bankruptcy core Scientific the largest Minor by Computing power filed for chapter 11 on Or chapter 11 on December 21st the move Comes as minors in general have been Squeezed by high price or high energy Costs and low Bitcoin prices core noted That it expects support from some of its Convertible note holders in the form of Two debtor in possession facilities Totaling up to 75 million according to The restructuring plan the secure debt Convertible note holders will get Equity The current equity and unsecured holders Will get warrants so that that so that As the company grows they will get more Shares it's Chief mining officer Russell Cann told coindesk out of the total 75 Million dollars the lenders have already Committed 57 million including Blackrock's new loan to The Miner the Dip facility has a maturity date of June 21st 2023 with terms to extend to September 21st according to the new Filing shares of course scientific trade At eight cents on Friday afternoon core First warned of the uh the risk of Bankruptcy in late October and said it Wouldn't be paying some of its loan Installments sending its shares

Plummeting 80 on the NASDAQ in November It reiterated that it may run out of Money by the end of this year compute North another major firm in the mining Business filed for chapter 11 bankruptcy In late September crypto minor Argo Blockchain narrowly avoided bankruptcy After getting a 100 million dollar Bailout from Mike novogratz Galaxy Digital this week BlackRock Vanguard and Fidelity are among a few of the trade Phi Giants that invested in Bitcoin Miners during the bull run as shares of Publicly traded miners offered a faster Way to get exposure to the sector Without having to buy Bitcoin basically What we're seeing here is a Is Blackrock well not just BlackRock but BlackRock helping facilitate essentially Here in this manner core to absolve all This debt through bankruptcy and then Continue to function as a company and Basically continue to operate right That's pretty much what we're looking at When we start talking about dip and the Way that they're manipulating all this Do I understand it fully no I probably Should do some more research definitely So I understand how all this business Works uh to me it's extremely Frustrating as you know We see these failures kind of get bailed Out in in funny Fashions right thanks For checking out this clip from the

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