The Bankrupt Bitcoin Miner Core Scientific has announced that Bitmain is committing to invest $53.9 million in the company. This commitment involves a combination of equity and funds to acquire new Bitcoin mining equipment.
Additionally, Bitmain has entered into a new hosting agreement with Core Scientific to support its mining operations. The support involves working together to upgrade Bitmain’s previous-generation miners hosted at Core Scientific’s data centers to increase the company’s total hash rate.
Core Scientific, a Bitcoin mining company, declared bankruptcy in 2022 after incurring losses of approximately $1.7 billion. Nevertheless, it continued to operate despite its bankruptcy.
According to the terms of the purchase agreement, Bitmain will supply Core Scientific with 27,000 Bitmain S19J XP 151 TH bitcoin mining servers, totaling $23.1 million in cash and $53.9 million in Core Scientific common stock.
The 27,000 units are expected to be received in the fourth quarter of 2023 and would add a potential 4.1 exahashes to its self-mining hash rate. Impressively, the S19J XP operates at a high-efficiency level of 21.7 Joules per TH/s.
Furthermore, the per-stock value of the share will be determined by a bankruptcy court in Q4. The deal is a testament to Bitmain’s commitment to the North American asset mining industry.
The core Scientific’s relationship with Bitmain has been since its early operation in 2017, when the firm operated more than 600,000 Bitmain miners across its data centers and currently still has the majority of its miners be Bitmain S19 models. This recent agreement between the two firms would however expand and strengthen their long-built relationship.
Max Hua, Bitmain CEO acknowledged the firm’s relationship with Core Scientific and expressed that their commitment to their hosting customers is impressive. “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 CEO said.
Moreover, Adam Sullivan expressed the deal would expand its relationship with Bitmain and stated that “Bitmain’s product quality, attention to service, and responsiveness are critical to our success in supporting the Bitcoin Network. The new miners we are securing with this agreement will enhance our mining fleet’s efficiency as we continue to prepare for next year’s halving event and beyond.”
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