Core Scientific Secures $77M Bitmain Agreement for 27K Bitcoin Mining Rigs
Core Scientific, a bankrupt crypto mining company, has reached a deal with Bitmain, a leading cryptocurrency mining hardware manufacturer, to expand its mining facilities. The agreement includes a combination of cash and equity, with Bitmain supplying 27,000 Bitcoin mining rigs for $23 million in cash and $53.9 million worth of common stock of Core Scientific.
Expanding Mining Operations
The collaboration between Bitmain and Core Scientific not only involves the purchase of mining hardware but also includes a new hosting arrangement to support Bitmain’s mining operations. The deal was finalized in August and is part of Core Scientific’s restructuring plan, which also includes other companies like Anchorage, BlockFi, and Mass Mutual Asset Finance.
Adding to Core Scientific’s Hash Rate
The implementation of Bitmain’s expansion and investment plan is pending court approval and is expected to be in effect by the fourth quarter of 2023. Once approved, the addition of the 27,000 mining rigs is projected to increase Core Scientific’s hash rate by 4.1 exahashes. Additionally, the two companies will collaborate to upgrade Bitmain’s previous-generation miners hosted at Core Scientific’s data centers to further enhance productivity.
Overcoming Bankruptcy Challenges
In December 2022, Core Scientific filed for Chapter 11 bankruptcy, attributing the financial crisis and the declining price of Bitcoin as the primary reasons for its decision. The company faced difficulties leading up to its collapse due to market fluctuations. However, with this Bitmain agreement, Core Scientific is taking a significant step towards getting back on its feet.
Editor Notes: Exciting Boost for Cryptocurrency Mining
The partnership between Core Scientific and Bitmain is an exciting development for the cryptocurrency mining industry. By securing a deal worth $77 million, Core Scientific will be able to enhance its mining capabilities and potentially improve its profitability. This collaboration signifies the resilience and potential for growth in the crypto industry, even during challenging times. Stay updated with the latest news and developments in the world of cryptocurrencies on Uber Crypto News.