Odaily News: A court document submitted on Tuesday revealed that Bitmain and Anchorage Digital, a cryptocurrency platform, are expected to acquire shares of Core Scientific, the second-largest publicly traded Bitcoin mining firm. The revised restructuring plan of the company requires a vote from the creditors and court approval for many of the proposed settlements.



Core Scientific will purchase 27,000 Bitmain Antminer S19j XP mining machines for $77.1 million. Once the plan takes effect, the acquisition will be funded by $23 million in cash and $54 million in company equity.



This may be Bitmain's first foray into investing in a publicly traded cryptocurrency mining company. The company has not responded to requests for comment.



Companies providing funding to Core Scientific for the purchase of mining machines can choose to convert all their debts into equity or assume 80% of the new company's guaranteed debts based on the value of their debts. The documents indicate that only Anchorage Digital is expected to choose the equity option. As of the bankruptcy date, the company has $29 million in loans.



As of the application date, Mass Mutual Asset Finance, Barings, BlockFi, 36 Street Capital Partners, and Trinity Capital collectively hold around $193 million in loans to Core Scientific, and it is expected that these companies will choose the guaranteed debts.



The company is also negotiating with existing common stockholders to provide $55 million in equity.



Investment bank B. Riley has provided $70 million in bankruptcy financing to Core Scientific, and the bank will convert the outstanding balance of the loan into deferred loans and provide an additional $25 million in new financing.



If secured noteholders vote to accept the plan, they can receive new guaranteed debts or equity equivalent to 75% of the value of their debts. If they do not vote to accept the plan, they will receive proportionate secured notes issued by the restructured company. (CoinDesk)



Previously, on May 23rd, the bankruptcy judge for Core Scientific stated during a hearing that the company should "accelerate its exit" from the Chapter 11 bankruptcy protection process because creditors have urged for a shorter restructuring timeline. Core Scientific's lawyers stated that the company might reach a restructuring plan before September 25th.