Celsius Network and Core Scientific Reach Agreement

Celsius Network and Core Scientific Agreement

Bankrupt cryptocurrency lender Celsius Network has reached an agreement with Bitcoin miner Core Scientific to shut down over 37,000 mining rigs. These rigs were hosted by Core Scientific during its bankruptcy proceedings.

Shutdown of Mining Rigs

Core Scientific filed a revised proposed order, which was accepted by Celsius, stating that all Celsius mining rigs would be powered down as of January 3, 2023. These rigs will remain inactive during the transition period. This decision marks a significant shift in operations for both companies involved.

Impact on Bitcoin Mining

The shutdown of these rigs has implications for the Bitcoin mining landscape, affecting the overall hash rate and Bitcoin mining efficiency. The decision reflects the challenges faced by companies in the cryptocurrency sector during financial distress.

Industry Implications

The move by Celsius and Core Scientific highlights the complexities faced by cryptocurrency companies in managing resources during financial instability. It underscores the ongoing adjustments in the industry as companies navigate economic and operational hurdles.

By understanding these developments, stakeholders can better anticipate changes in the cryptocurrency mining sector and adjust strategies accordingly.