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Core Scientific Emerges from Bankruptcy, Acquires 27K Bitmain Servers for $77M

Sep 23, 2023 at 12:23 pm

In a recent development, Bitmain is poised to receive a substantial amount of $53.9 million worth of common CORZQ stock as part of a negotiated agreement.

Bankrupt mining company Core Scientific (CORZQ) is in the process of acquiring a notable batch of 27,000 bitcoin (BTC) mining servers from Bitmain. This transaction encompasses a monetary component of $23.1 million and an additional $53.9 million in common stock, as outlined in an official press release.

This transaction, initially broached last month, plays a pivotal role in Core Scientific's overall strategy to navigate through the complexities of its ongoing bankruptcy proceedings. Additionally, there have been indications that Anchorage Digital, a cryptocurrency firm, may also become an equity stakeholder in Core Scientific.

It is anticipated that the finalization of this acquisition will be realized in the fourth quarter of the current year. This acquisition could potentially empower Core Scientific with an additional 4.1 exahashes, further reinforcing its existing hash rate.

After grappling with a financial downturn and grappling with escalated energy costs, Core Scientific initiated its bankruptcy filing back in December of the preceding year. With oversight from a federal judge, the company is working towards emerging from bankruptcy proceedings as early as this month.

Bitmain CEO Max Hua responded to the deal with an air of optimism about the forthcoming collaboration. He underscored the significant role that Core Scientific plays in fortifying the strength and stability of the Bitcoin Network. Hua conveyed:

 "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," as articulated in the press release."

Read more: Crypto Collaboration and Expansion Deal

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