Celsius and Core Scientific Reach Amicable Resolution with $45 Million Mining Agreement

Police & Regulations
Sep 15, 2023 at 02:26 pm

Celsius and Core Scientific, two crypto mining providers, have come to a preliminary agreement to settle their prolonged legal dispute, according to court documents filed on Thursday. The proposed deal involves Celsius making a payment of $14 million in cash, with the remainder settled through adjusted claims. This resolution awaits approval from judges in Texas and New York, where Core and Celsius have respectively filed for bankruptcy.

The agreement is seen as a means to put an end to the extensive and costly legal battle with Core, while also avoiding the substantial expenses that a full-fledged litigation process would entail, as stated in a filing by Celsius' legal team. The deal also includes Celsius gaining ownership of Cedarvale, an 85-acre mining site located in Texas. It is described as a "fair, equitable, and carefully negotiated resolution."

Previously, Celsius had lodged claims amounting to $312 million after Core deactivated Celsius' mining rigs in January, citing unpaid dues. Celsius had also filed motions asserting that Core should face contempt of court charges.

Currently, Celsius creditors are in the process of voting on whether to approve a sale to the crypto consortium Fahrenheit Holdings, which includes mining company US Bitcoin Corp.

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