BUZZ-Core Scientific rises after upsized $550 mln convertible offering

Reuters12-03
BUZZ-Core Scientific rises after upsized $550 mln convertible offering

** Shares of Core Scientific CORZ.O up 4% at $16.70 early Tues after bitcoin mining and high-performance computing data center operator raises more capital than targeted

** Austin, Texas-based firm early Tues announced pricing private offering of $550 mln 0% convertible bonds due Jun 15, 2031 (6-1/2-year tenor)

** Offering size boosted from $500 mln

** Initial conversion price of $22.49 represents 42.5% premium to stock's VWAP (volume weighted average price) from 2:00-4:00 p.m. ET on Mon

** Co intends to use net offering proceeds for general purposes, including potential acquisitions or securities repurchases

** With ~279.3 mln shares outstanding, co has ~$4.7 bln market cap, per LSEG

** Shares, which have surged nearly 80% over the past three months, closed at $3.44 on Jan 24 after co emerged from bankruptcy

** In Oct, Nvidia-backed NVDA.O AI hyperscaler CoreWeave exercised final contract option to take an additional 120 MWs of computing power from Core Scientific

** In Jun, Core Scientific rejected a $1 bln buyout offer from CoreWeave

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment