BlackRock provided a loan to a bankrupt crypto mining company

Core Scientific is one of the largest Bitcoin miners, contributing almost 10% of the computing power of the entire Bitcoin network.

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BlackRock Inc. is among a group of creditors that loaned money to Bitcoin miner Core Scientific Inc. so it could continue to operate while in bankruptcy.

BlackRock has pledged a $17 million loan through funds and accounts managed by its subsidiaries, Bloomberg reports.

Read Also: Core Ethereum Developers Discuss Upgrades, Hard Forks

The Austin, Texas-based cryptocurrency mining company declared bankruptcy last week and gained access to $37.5 million in fresh cash from a group of creditors holding most of its convertible securities, more than $550 million. The loan has a 10% interest rate that is payable in kind.

Read Also: BlackRock enters the cryptocurrency market through Coinbase

Core Scientific is one of the largest Bitcoin miners, contributing nearly 10% of the computing power to secure the entire Bitcoin network.

It is among a small group of companies that raised millions by issuing debt during the cryptocurrency’s recent boom, but struggled to stay in business after its value plummeted and energy prices skyrocketed.

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