B. Riley has agreed to a loan to Core Scientific

Major BTC miner Core Scientific, which is going through bankruptcy proceedings, was able to reach an agreement with B Riley and get approval for the issuance of loan funds by an investment bank.

The court-approved $70 million loan will help with the repayment of a line of credit previously opened by the company’s shareholders. The funding received will not only allow for flexibility in future operations but will also help support ongoing operations for 15 months.

The loan is secured by all of Core Scientific’s property and assets. The cost of the loan is 10% per annum, the term is 12 months, however, the lender has granted a grace period of three months.

Recall that Core Scientific reported problems back in October last year. In December, B. Riley made a $72 million financing offer. The miner then filed for insolvency. Core Scientific representatives noted that receiving funding from B. Riley had nothing to do with the restructuring plans.

The economic terms of the loan include activities beyond the original line of credit.