Trinity Capital Inc. (NASDAQ: TRIN) has recently announced its exit from an equity position in Core Scientific, a move that resulted in a commendable return of 17.7% on the initial investment. The company provided $30 million in equipment financing to Core in 2021, and following Core's Chapter 11 bankruptcy in December 2022 and subsequent exit in January 2024, Trinity was granted a $28.3 million claim in the bankruptcy.
Trinity elected to receive shares of Core's common stock in satisfaction of the claim and has now completed the liquidation of the 5,640,373 shares received. The shares were sold at a weighted average price per share of $5.13, resulting in total proceeds of $29.0 million. The internal rate of return on the initial investment, including loan interest payments received, stands at 17.7%.
This successful exit from the equity position underscores Trinity's ability to navigate and capitalize on opportunities in the financial market. As an internally managed business development company, Trinity remains focused on providing diversified financial solutions to growth-stage companies with institutional equity investors. Their investment objective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans, equipment financings, and equity-related investments. Today the company's shares have moved 0.9% to a price of $15.0. Check out the company's full 8-K submission here.
