Core Scientific Stock Is Sliding Tuesday: Here's Why
Portfolio Pulse from Adam Eckert
Core Scientific Inc (NASDAQ:CORZ) shares are trading lower after the company announced a proposed $350 million convertible senior notes offering. The notes will mature in 2029 and the proceeds will be used to repay outstanding loans and redeem senior secured notes due 2028.
August 13, 2024 | 1:16 pm
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Core Scientific Inc (NASDAQ:CORZ) shares are down 10.4% following the announcement of a $350 million convertible senior notes offering. The company plans to use the proceeds to repay outstanding loans and redeem senior secured notes due 2028.
The announcement of a significant convertible senior notes offering typically signals potential dilution of existing shares, leading to a negative market reaction. The use of proceeds to repay loans and redeem notes is a positive move for financial health but does not offset the immediate dilution concerns.
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