Summary by Futu AI
Core Scientific announced the mandatory conversion of its Secured Convertible Notes due 2029 into equity, triggered on July 5, 2024, after the company's stock price exceeded specified thresholds for 20 consecutive trading days. The conversion, scheduled for July 10, will result in approximately 45 million shares being issued in exchange for $260 million of convertible debt at a conversion price of $5.8317.Additionally, the company's general unsecured creditor contingent payment obligation, previously valued at $3 million as of March 31, 2024, was extinguished on July 1, 2024. This occurred after meeting stock price performance criteria within a 30-day trading period.CEO Adam Sullivan highlighted this as a significant milestone following the company's emergence from bankruptcy, emphasizing enhanced financial flexibility for growth initiatives and portfolio diversification strategy. Core Scientific operates as one of North America's largest bitcoin mining and hosting services providers, with eight operational data centers across five states.
