Core Scientific to Shut Off Thousands of Mining Rigs After Financial Woes and Bankruptcy Filing

Scientific and celsius, two bankrupt firms, have come to an agreement to shut off thousands of celsius mining rigs. core scientific had been in financial trouble for some time, partly due to its contract with celsius, which filed for bankruptcy protection in july. core scientific also filed for bankruptcy in december and asked judge david r. jones to reject celsius’ contracts as an emergency measure.

Agreement between core scientific and celsius to shut off the mining rigs was finalized in late december, while core scientific went public on the nasdaq via a special purpose acquisition vehicle in january 2022. core scientific was offered a $72 million cash injection from investment bank b. riley, but rejected the offer before it was made public. core scientific reviewed subsequent proposals and concluded the offer “did not provide a comprehensive restructuring solution”.

Scientific was facing the same difficulties affecting other listed crypto miners due to bitcoin prices and energy costs, and the relationship between core scientific and celsius was not providing a sufficient solution. core scientific had been losing $53,000 per day on the hosting agreement and hoped that by ending the relationship they could use the additional capacity to generate as much as $2 million a month. core scientific will continue operations throughout the bankruptcy process and a deal to fully end the relationship between core scientific and celsius is being finalized.

By Evey Lovelace

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