Bloomberg Law
Jan. 24, 2023, 4:35 PM

BlackRock, Apollo Among Bondholders of Bankrupt Crypto Miner

David Pan
David Pan
Bloomberg News

BlackRock Inc. and Apollo Global Management Inc. are among a group of creditors that lent around $500 million to bankrupt Bitcoin miner Core Scientific Inc. by purchasing its secured convertible notes, according to a court filing.

The disclosure reveals how traditional finance firms helped to bankroll the crypto-mining industry during its boom, when such companies raised billions of dollars by issuing debt. But a plunge in the price of Bitcoin, the largest cryptocurrency, and high electricity costs have slashed the profit margins of the so-called miners that process transactions, threatening the companies with insolvency.

BlackRock acquired $38 ...