Crypto Miner Debt Reconstruction – 238

Core scientific to hand crypto mining Rigs to NY dig to extinguish 38.6 Million dollars in debt and why Dick had Previously said it would object to a 70 Million dollar life loan for core if its Own deal wasn't finalized Course identific will hand over about 18 Percent of its crypto mining rigs or 27 403 machines to lender NY dig in Exchange for extinguishing 38.6 million Dollars in debt according to a February 2nd filing with the bankruptcy court for The southern district of Texas Core which as uh as of the end of December 22 operated 153 000 machines For its self-minding operations filed For chapter 11 bankruptcy protection Late late last year the NY dig deal has Yet to be approved by the bankruptcy Court judge the bear Market in crypto Has taken a toll on the mining industry Particularly on leveraged firms as high Energy prices coupled with a low bitcoin Price have led to consolidation and Capitulation so my like I go back to This which is my argument here would be If we're going to go into a situation Where Bitcoin hits 45 000 by the end of The year that is purely due to the price To Mint a Bitcoin will be forty five Thousand dollars in which case we're Really still basing it off of energy and We haven't broken the having cycle right And that's what I would postulate if you

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Had any help of hitting forty five Thousand and then really like We kind of go back into this I I asked This question on Twitter right because Like A lot of people that are like bullish on Bitcoin that are It's very odd I always ask this like why Are all the Bitcoin Maxis buying Bitcoin And not buying miners right It's very odd welcome to the stream DJ Minds make sure you guys go follow And Subscribe to DJ Minds There you go but I always have this Question and it really comes down to I Think an unpredictable energy market Right if you look at it completely Objectively There is always a risk that you run I Suppose if you're if you're You're if you're mining at scale right You always you always have like Basically energy as your number one risk Factor right Because once you mind at scale like If you are sure mining okay so if you're Like mining like on your farm and you Have a little solar and you're like I'm Not solar I don't have to worry that's Fine I'm talking about at scale we're Talking about the big boys When they have to be connected to the Grid to a certain extent then they have Certain regulations that are impending

On them which is usually like once you Get over a certain amount of megawatts That's going to be the factor that we Get into which is where then we get into The biggest risk for a lot of these Large mining firms is the Unpredictability or of the energy market Right Okay so the bear Market in crypto has Taken a toll we got into that and here We go so the agreement will bring Substantial benefits because the value Of the machines and this is for Borrowing the 77 million from New York Dig to buy mining equipment but Essentially stop paying off the loan Since the end of the third quarter The agreement will bring substantial Benefits because the value of the Machines is lower than the outstanding Principle and the machines are no longer Needed for its operations core said in The filing Prices for Bitcoin mining rigs have Dropped about 85 in the last year According to data from Luxor Technologies on January 34 first Cora Agreed to borrow 70 million from the Investment Bank B Riley on February 1st NY digg filed a reservation of Rights Letter with the court saying it might Object to the financing if core didn't Finalize an agreement over its own debt The lender has previously argued that it

Isn't well protected against the Diminution actually don't know this word So let's go look at this up I don't even know if I said that right Ammunition Reduction okay cool diminution Diminution there we go diminution of the Value of the machines under the post Bankruptcy financing agreements about 60 Of the machines posted as collateral for NY dig loans are bit main antminer s19s An older model whereas around the rest Are newer antminer s19j Pros earlier in 2023 core moved to reject its hosting Contracts with Celsius mining which is Also bankrupt Established in 2017 octominer is an International mining hardware company They manufacture and engineer the best Mining equipment in the industry and Supply rigs to some of the largest Mining farms around the world their GPU Mining rigs also integrate with the top Crypto operating systems like Hive OS Miner stat and simple mining all parts Come with an international one-year Warranty exciting news they will be Adding Asic miners for sale to their Website soon and launching a new product Built specifically for Asic home miners Please visit octominer.com or email Support octominer.com for questions And more debt restructuring except in a Different manner comes from Tara wolf

Obviously what we're seeing of course is A bunch of restructuring M A Obviously you know mergers Acquisitions Complete bankruptcies all this stuff is Going to go on in the mining industry Until uh pretty much until the next Having right Once once all the mergers and Acquisitions and bankruptcies Etc have Been you know finalized I think once That happens is where we'll start to see The market really stabilize before we Get into the next Bull Run That would be how I would see it right a Slew of mining firms have restructured Their debt loads While others are facing Bankruptcy Tara Wolfe is the latest Bitcoin miner to restructure its debt Obligations in order to Stave off Negative cash flow Miners such as bit farms and green Regeneration have paid down or Restructured their debt as the bear Market coupled with high energy prices Over the last few months have taken a Toll on the industry some of those that Haven't been able to restructure have Started chapter 11 bankruptcy procedures Sold assets or faced margin calls Obviously not dissimilar to like what is Happening with court core scientific Civic the more scientific under the Restructuring signed on January 27th Amortization of the term loan will be

Replaced with a free cash flow sweep Mechanism through April of 2024. According to a Wednesday press release Tara Wolfe will also be able to extend The maturity date of its Term Loan to April 2024 as long as it manages to Raise an undisclosed requisite amount of Equity proceeds by March 15 2023 on Wednesday the mining firm announced a Public offering of common stock which it Priced calling for gross proceeds of 25 Million dollars the offering is expected To close on or about February 6th Subject to customary closing conditions At the end of the third quarter of 2022 Terawolf had 138.5 million dollars of Principal outstanding on the term loan Its biggest mining facility is a 60 Megawatt site in New York Terra wall Stock was down about 32 percent on Wednesday as of the time of riding Terwolf is one of the most indebted Publicly listed miners according to data Analyzed by coindesk in June the miners Cash reserves are running low in the Third quarter Terra wolf has also raised 6.75 million dollars in equity in the Past several months The Two co-founders Chief Executive Officer Paul Prager and Chief Operating Officer Nazar Khan bought 2.5 million Dollars in terawolf stocks for one Dollar and five cents per share in a Private or private placement adding to

The 15 million dollars they have already Invested in the company they have also Received approximately 4.25 million Dollars in proceeds from the exercise of A certain private placement warrants Issued in December of 2022 according to The press release So obviously with the restructuring of The debt they're hoping to stay alive You know if they're already this bad on The books though I wouldn't expect them To be able to Fully pull this off but you know it'll Be impressive if they do especially with The stock declining by 32 percent But you know respect where respect is Due they are putting their money where Their mouth is meaning you do have the CEO and the CEO personally staked into This by purchasing and buying up their Stock thanks for checking out this clip From the crypto mining show you can Check out the full episode here or more Crypto content down here also I'd like You to check out my locals page at son Of a tech.locals.com where you can Become a member for free or choose to be A five dollar a month supporter that Unlocks additional content

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