Core
Scientific, a bankrupt cryptocurrency miner, is set to purchase 27,000 Bitcoin
mining servers from Bitmain in a substantial transaction valued at $77 million,
as disclosed in a recent press release. The acquisition comprises $23.1 million
in cash and $53.9 million in common stock.
This
deal, which was originally announced last month as part of Core Scientific’s
bankruptcy plan, is a significant step in the company’s restructuring efforts.
There were also discussions regarding crypto firm Anchorage Digital potentially
taking equity in the company.
Core
Scientific anticipates the delivery of these mining units, which could
potentially add 4.1 exahashes to its hash rate, during the fourth quarter of
this year.
The
company faced financial challenges and filed for bankruptcy in December of the
previous year. A federal judge overseeing the case indicated the possibility of
Core Scientific emerging from bankruptcy as early as this month, signifying a
potential turnaround for the firm.
This
strategic move to acquire Bitmain’s mining servers underscores the resilience
of the cryptocurrency
mining industry and its ongoing evolution, even amid challenging market
conditions.
The
transaction is expected to play a pivotal role in Core Scientific’s path to
recovery and growth in the crypto mining space.
Bitmain’s CEO, Max Hua, said: “Core Scientific
is an important contributor to the strength and stability of the Bitcoin
Network, and we look forward to working closely with their team to help realize
Bitcoin’s full
potential.”
The
firm recently reported positive results, with increased bitcoin production and
an expanded mining operation. Core Scientific had been one of the largest
cryptocurrency mining companies before market instability caused by the FTX collapse led to its
bankruptcy.
Core
Scientific to Settle Debts in Bankruptcy Plan, Citing Improved Liquidity
Finance Magnates reported in June that Bitcoin miner Core Scientific,
currently undergoing Chapter 11 bankruptcy proceedings, had revealed a joint plan
that promises full and final satisfaction of allowed debtor-in-possession (DIP)
claims.
Filed
in a Texas bankruptcy court, the plan attributes its improved financial outlook
to factors, such as rising Bitcoin prices, an increased Bitcoin network hash
rate, and reduced mining costs.
Holders
of DIP claims will receive full payment in cash or other mutually agreed
alternatives, with any liens securing these claims being terminated. Chapter 11
bankruptcy allows the company to continue operating while reorganizing its
debt.
In
May, Judge David Jones urged Core Scientific to accelerate its emergence from bankruptcy, with the
company’s legal team aiming for a reorganization plan by September.
With
Bitcoin prices and mix-up rates on the rise and lower electricity costs, Core
Scientific aims to increase profitability and generate revenues to repay its debt of $6
million.
Core
Scientific, a bankrupt cryptocurrency miner, is set to purchase 27,000 Bitcoin
mining servers from Bitmain in a substantial transaction valued at $77 million,
as disclosed in a recent press release. The acquisition comprises $23.1 million
in cash and $53.9 million in common stock.
This
deal, which was originally announced last month as part of Core Scientific’s
bankruptcy plan, is a significant step in the company’s restructuring efforts.
There were also discussions regarding crypto firm Anchorage Digital potentially
taking equity in the company.
Core
Scientific anticipates the delivery of these mining units, which could
potentially add 4.1 exahashes to its hash rate, during the fourth quarter of
this year.
The
company faced financial challenges and filed for bankruptcy in December of the
previous year. A federal judge overseeing the case indicated the possibility of
Core Scientific emerging from bankruptcy as early as this month, signifying a
potential turnaround for the firm.
This
strategic move to acquire Bitmain’s mining servers underscores the resilience
of the cryptocurrency
mining industry and its ongoing evolution, even amid challenging market
conditions.
The
transaction is expected to play a pivotal role in Core Scientific’s path to
recovery and growth in the crypto mining space.
Bitmain’s CEO, Max Hua, said: “Core Scientific
is an important contributor to the strength and stability of the Bitcoin
Network, and we look forward to working closely with their team to help realize
Bitcoin’s full
potential.”
The
firm recently reported positive results, with increased bitcoin production and
an expanded mining operation. Core Scientific had been one of the largest
cryptocurrency mining companies before market instability caused by the FTX collapse led to its
bankruptcy.
Core
Scientific to Settle Debts in Bankruptcy Plan, Citing Improved Liquidity
Finance Magnates reported in June that Bitcoin miner Core Scientific,
currently undergoing Chapter 11 bankruptcy proceedings, had revealed a joint plan
that promises full and final satisfaction of allowed debtor-in-possession (DIP)
claims.
Filed
in a Texas bankruptcy court, the plan attributes its improved financial outlook
to factors, such as rising Bitcoin prices, an increased Bitcoin network hash
rate, and reduced mining costs.
Holders
of DIP claims will receive full payment in cash or other mutually agreed
alternatives, with any liens securing these claims being terminated. Chapter 11
bankruptcy allows the company to continue operating while reorganizing its
debt.
In
May, Judge David Jones urged Core Scientific to accelerate its emergence from bankruptcy, with the
company’s legal team aiming for a reorganization plan by September.
With
Bitcoin prices and mix-up rates on the rise and lower electricity costs, Core
Scientific aims to increase profitability and generate revenues to repay its debt of $6
million.
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- Source: https://www.financemagnates.com//cryptocurrency/core-scientifics-multi-million-dollar-deal-27000-btc-miners-from-bitmain/
