{"id":64727,"date":"2023-09-24T02:43:48","date_gmt":"2023-09-24T06:43:48","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/bitmain-to-invest-54-million-in-bankrupt-bitcoin-mining-company-core-scientific\/"},"modified":"2023-09-24T02:43:50","modified_gmt":"2023-09-24T06:43:50","slug":"bitmain-to-invest-54-million-in-bankrupt-bitcoin-mining-company-core-scientific","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=64727","title":{"rendered":"Bitmain to Invest $54 Million in Bankrupt Bitcoin Mining Company Core Scientific"},"content":{"rendered":"
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Digital asset miner Core Scientific announced a new partnership with Bitmain, a major player in the supply of Bitcoin mining and Artificial Intelligence (AI) computing hardware.\u00a0<\/p>\n

As part of the deal, Bitmain will invest $53.9 million in the company expanding their long-standing relationship.<\/p>\n

Per the agreement<\/u>, Bitmain will supply the crypto miners 27,000 Bitmain S19J XP 151 TH mining servers for $23.1 million and an investment of $53.9 million in Core Scientific stock, the value of which is decided by the bankruptcy court in Q4 2023.<\/p>\n

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As it emerges from a bankruptcy proceeding, Core Scientific would reshape its operations leveraging on the cash\/equity deal and previous hosting agreements with Bitmain to support the latter\u2019s mining operations.<\/p>\n

This development could see the mining industry in North America deepen further with top-notch equipment and a clear roadmap for expansion.\u00a0<\/p>\n

Since it commenced mining operations in 2017, Cire has deployed over 600,000 Bitmain miners with about 99% of the company\u2019s hosting customers being Bitmain S19 models.<\/p>\n

A partnership for the future<\/h2>\n

Both companies announced the deal as beneficial to their course over the next few years at a time when the crypto mining sector is taking hits from regulators and biting market forces.<\/p>\n

Max Hua, Bitmain\u2019s CEO speaking on the deal stressed their long-standing relationship with Core and a good track record over the years.<\/p>\n

\u201cWe look forward to deepening our strategic relationship with Core Scientific, our long-standing U.S.-based partner. Their professionalism, integrity, and commitment to the success of their hosting customers and the growth of the Bitcoin (<\/i>BTC<\/u><\/i>) Network is unsurpassed in the industry.\u201d<\/i><\/p>\n

Hua added Core Scientific is essential to the Bitcoin network and needed to establish the blockchain\u2019s full potential.<\/p>\n

For Core, CEO Adam Sullivan sees it as a platform for expanding their fleet as they prepare for the next halving.<\/p>\n

\u201cWe are honored to expand our significant relationship with Bitmain. Together, we have worked tirelessly to professionalize our industry, charting a path for the long-term growth of the Bitcoin Network as Bitcoin adoption increases around the world.\u201d<\/i><\/p>\n

Core turns to efficiency amid bankruptcy case\u00a0<\/h2>\n

Last week Celsius and Core Scientific reached a tentative $45 million agreement<\/u> that will see Celsius pay $14 million in cash with the remainder in adjusted claims for the Cedarvale mining site.<\/p>\n

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Keen on performance, the company aims to maximize existing machines<\/u> and restructure its operations to maintain its stance as a main global player.\u00a0<\/p>\n

\u201cWe are seeking ways to optimize performance and efficiency at both the data center and individual miner level. We are repositioning some of our machines between and inside of our facilities to increase post-halving profitability,\u201d <\/i>Sullivan noted.\u00a0<\/p>\n<\/p><\/div>\n