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Core Scientific completes $55 million equity rights offering

EditorRachael Rajan
Published 09/01/2024, 01:16 am
© Reuters.
CORZQ
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AUSTIN, Texas - Core Scientific, Inc. (OTC: CORZQ), a North American blockchain computing data center provider, has announced the successful completion of its Equity Rights Offering (ERO), which was fully subscribed at the capped amount of $55 million. The ERO, which concluded last Thursday, attracted significant interest from current shareholders, reflecting confidence in the company's strategic direction and operational emergence.

The offering's oversubscription indicates shareholder support and eliminates the need for previously arranged backstop funding. Adam Sullivan, CEO of Core Scientific, expressed satisfaction with the outcome, stating that the capital raise will bolster the company's liquidity and facilitate its emergence from Chapter 11 bankruptcy. Sullivan also highlighted the company's readiness to continue pursuing growth plans.

Participants who exercised oversubscription rights will receive their shares on a pro-rata basis, with any excess payments being returned in accordance with the company's Rights Offering Procedures. This development marks a pivotal moment for Core Scientific as it prepares to re-list and move forward post-bankruptcy.

Core Scientific, established in 2017, manages several data centers across the United States, specializing in colocated digital asset mining and self-mining. The company's proprietary Minder® software is designed to optimize miner management through advanced data analytics.

The information in this article is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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