Core Scientific to borrow up to $70M from B. Riley to extend runway

Core Scientific ( OTCPK:CORZQ ) has agreed to receive a loan of up to $70M from investment bank B. Riley ( NASDAQ: RILY ) as the troubled bitcoin ( BTC-USD ) miner seeks to continue operations after filing for Chapter 11 protection last month, according to a Tuesday filing. The downfall of Core ( OTCPK:CORZQ ) stemmed from a dynamic that boded poorly for the mining industry: Depressed bitcoin ( BTC-USD ) prices, a near-record high network hashrate, and elevated electricity prices. Separately, fellow BTC miner Greenidge Generation is working to reduce its debt to B. Riley ( RILY ) and NYDIG as it gets caught up in the industry slump. CORZQ is now seeking approval for the replacement debtor-in-possession credit facility to replace an existing facility, If approved by the Bankruptcy Court for the Southern District of Texas Houston Division, the loan will provide Core ( OTCPK:CORZQ ) 15 months' runway "and significant flexibility," the filing said. The replacement DIP facility "also contains economic terms that are reasonable and generally superior to those provided under the Original DIP Facility," the company said . It's "better than any alternative proposal the Debtors (Core Scientific) received." Previously, (Jan. 24) Core Scientific raised $500M from BlackRock ( BLK ), Apollo Global ( APO ) and other creditors.