Core Scientific Stocks Fall 10% Following Convertible Senior Note Offer

After disclosing its plans to offer $350 million in convertible senior notes a day prior, shares of Bitcoin miner Core Scientific fell by more than 10%.

The company later increased the offering to $400 million. A convertible senior note is a form of debt that can be converted into equity at a later date and accrue interest for the investor.

Core Scientific’s stock on the Nasdaq dropped to $8.46 per share, but recovered slightly to $8.55 after hours.

According to a press release on August 14, the miner plans to sell the notes in a private offering to qualified institutional buyers only.

Investors can choose to hold onto the debt until maturity or convert it into shares, and interest will be paid out semi-annually.

The offering may also include the option for purchasers to buy an extra $60 million in notes maturing on September 1st, 2029, or earlier if converted, redeemed, or repurchased. Settlement is set for August 19.