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Core Scientific Set to Reduce $260M in Bitcoin Mining Debt

Core had about $580 million in current and long-term notes payable as of Q1

About six months after emerging from bankruptcy protection, bitcoin mining and data center operator Core Scientific is poised to slash $260 million in debt from its balance sheet.

The company announced on Monday the mandatory conversion of its secured convertible notes due 2029 after its stock price met the criteria for triggering the conversion.

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As part of Core’s reorganization plan, $260 million in convertible notes were issued in January with a voluntary conversion point of $5.83 and a mandatory conversion point of $7.79.

The mandatory conversion was triggered on July 5 when Core Scientific’s stock price met the threshold for 20 consecutive trading days.

Core’s share price began to rally in early June after announcing the expansion of hosting capacity for CoreWeave’s AI computing. It closed at $7.85 on June 6 and has stayed above that level since.

The conversion is set to take place on Wednesday and will issue 45 million shares in exchange for extinguishing $260 million in debt. Holders of the notes will receive shares of Core’s common stock, calculated by dividing the principal amount of their notes by the conversion price of $5.8317, plus cash for any fractional shares.

Following the news of the mandatory conversion, Core’s share price reached a new yearly high of $11, closing at $10.36 on Tuesday.

As of Mar. 31, Core had about $580 million in current and long-term convertible and notes payable.