Core Scientific Stock Is Sliding Tuesday: Here's Why

Core Scientific Inc CORZ shares are trading lower Tuesday after the company announced a proposed convertible senior notes offering.

What Happened: Core Scientific said it intends to offer $350 million worth of convertible senior notes due 2029 in a private offering to qualified institutional buyers. The company plans to grant the initial purchasers a 13-day option to purchase up to an additional $52.5 million of the notes.

The notes will be senior unsecured obligations of Core Scientific, accrue interest payable semi-annually and mature on September 1, 2029, unless earlier converted, redeemed or repurchased. 

Core Scientific said it intends to use the net proceeds from the offering to repay in full the outstanding loans under its credit and guaranty agreement the company entered into on Jan. 23 and redeem all of its outstanding senior secured notes due 2028. Any remaining net proceeds would be used for general corporate purposes.

See Also: Liquidators Pursue $1.3B From TerraForm Labs After Three Arrows Capital Collapse: Report

How To Buy CORZ Stock

By now you're likely curious about how to participate in the market for Core Scientific – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. In the case of Core Scientific, which is trading at $9.47 as of publishing time, $100 would buy you 10.56 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

CORZ Price Action: Core Scientific shares were down 10.4% at $8.48 at the time of publication, according to Benzinga Pro.

Photo: 3844328 from Pixabay.