Core Scientific Sells Texas Data Center Amid Bankruptcy Proceedings
Core Scientific's Strategic Sale
Core Scientific Inc., a prominent Bitcoin mining firm, has decided to sell its Texas-based data center to Celsius Network LLC's mining unit for $14 million. This transaction, which awaits court approval, concludes the ongoing litigation between these two companies. The dispute initially arose from disagreements over hosting contracts and electricity costs.
Bankruptcy and Financial Challenges
Both Core Scientific and Celsius Mining filed for bankruptcy last year due to cryptocurrency market downturns. Core Scientific attributed part of its financial troubles to Celsius's inability to meet financial commitments, which affected Core Scientific's liquidity.
Potential of the Texas Data Center
The Texas data center, currently partially developed and non-operational, features a power production capacity of 215 megawatts. It includes incomplete buildings and necessary equipment for its completion. Once operational, it promises to be one of Texas's largest mining facilities.
Celsius Mining's Future Plans
Despite its bankruptcy status, Celsius Mining remains active and aims to boost its mining capacity to 300 megawatts with the acquisition of this new site. US Bitcoin Corp. has been tasked with managing the construction, having won a bankruptcy auction to oversee Celsius's mining assets.
Core Scientific's Future Outlook
Core Scientific plans to relist on an exchange later this year, emphasizing that the sale of the Texas site will not impact its mining operations or its strategic three-year roadmap established in June 2023. Despite previous setbacks, the company remains focused on its growth trajectory.
Industry Impact
Celsius Mining made an ambitious industry entry with an IPO in 2022 but declared bankruptcy shortly after. A substantial portion of its mining operations was managed by hosting providers, including Core Scientific. This sale represents a significant shift in the landscape of the Bitcoin mining industry.
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