US cryptocurrency mining company Core Scientific emerges from bankruptcy

Agreed on settlement terms with key parties

Core Scientific, a major US cryptocurrency mining company, has announced that it expects to emerge from bankruptcy in January next year.

The company said it has reached an agreement in principle with all major parties regarding the terms of settlement for all lawsuits based on Chapter 11 of the U.S. Bankruptcy Code.

Core Scientific filed for Chapter 11 bankruptcy in December 2022, and is currently trying to use the proceeds to pay off debt while continuing its mining operations.

Core Scientific CEO Adam Sullivan said:

In the virtual currency mining sector, various companies are expanding their facilities as the industry is expected to be reorganized due to the Bitcoin (BTC) halving. Iris Energy, Riot, Hut8, and Cipher Mining have also ordered additional mining machines.

connection: Bitcoin expected to reach all-time high by November next year, halving and US presidential election will be factors behind the rise | VanEck Report

$45 million settlement with Celsius

In September, Core Scientific reached a settlement with Celsius Network, a cryptocurrency lending company that is undergoing restructuring, in a dispute over a mining farm in Texas.

Core Scientific has agreed to sell the Cedar Vale mine in Texas to Celsius for approximately 2 billion yen ($14 million). It also agreed to waive all claims against Celsius worth 4.4 billion yen ($31 million).

Core Scientific used to host 37,000 Bitcoin mining machines owned by Celsius’ mining subsidiary in its data center, but after parent company Celsius went bankrupt in July 2022, Core Scientific lost fees and electricity costs. He said he had started falling behind on payments.

Celsius is currently working with Hut8, a Nasdaq-listed cryptocurrency mining company, to develop the facility it purchased from Core Scientific. Once completed, it is expected to provide 215 megawatts (MW) of electricity and deploy approximately 66,000 mining machines.

connection: Nasdaq-listed virtual currency Bitcoin mining company Hut8 to build new facility with Celsius

Self-mine over 12,500 BTC

Core Scientific’s November 2023 #Bitcoin Production and Operations Update is out!

Read the full report here: https://t.co/i9l1Qlr2x0 pic.twitter.com/tgl0mRb9VH

— Core Scientific (@Core_Scientific) December 5, 2023

On the 5th, Core Scientific announced its Bitcoin mining results for November. It is said to have produced 1,360 BTC (equivalent to a market value of 8.5 billion yen) with a computing power of 21.5 EH/s (exahash/second). Exahash is the ability to perform 100 quintillion hash calculations per second.

Since the beginning of this year, we have self-mined over 12,500 Bitcoins (equivalent to a market value of 78.2 billion yen), and including those mined for customers, we have mined over 17,600 Bitcoins (equivalent to a market value of 110.2 billion yen) in total. He also said that he had mined it.

Over the next seven months, the company expects to install additional mining machines with a mining capacity of 6.6 exahashes per second, with 372 megawatts (MW) of infrastructure expected to be completed over the next few years.

Currently, major global asset management companies such as BlackRock, Vanguard, and State Street are investing in the Bitcoin mining sector. It is also argued that this trend, which continued during the Bitcoin bear market, may be due to a more positive perception of Bitcoin’s environmental impact.

connection: What is the background behind the increase in investment in major asset management companies such as BlackRock and Bitcoin mining companies?

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