- Bitmain has announced that it will invest $53.9 million in the bankrupt Bitcoin mining company, Core Scientific.
- Bitmain plans to supply Core Scientific with 27,000 Bitmain S19J XP 151 TH servers in exchange for $23.1 million in cash and $53.9 million in Core Scientific shares.
- Core Scientific filed for bankruptcy in December 2022. At the time, the company was generating positive cash flow but stated that it didn’t have enough to repay its debts.
Bitmain will invest in Core Scientific; The two companies agreed on a combination of capital and cash to purchase efficient Bitcoin mining equipment.
Bitmain to Invest in Core Scientific!
Bitmain, one of the leading manufacturers of digital currency mining servers, has announced that it will invest $53.9 million in the bankrupt Bitcoin mining company Core Scientific.
The two companies have agreed on a combination of capital and cash to purchase efficient Bitcoin mining equipment. Bitmain plans to supply Core Scientific with 27,000 Bitmain S19J XP 151 TH servers in exchange for $23.1 million in cash and $53.9 million in Core Scientific shares. In this context, Bitmain CEO Max Hua said:
“We look forward to deepening our strategic relationship with our long-term American partner, Core Scientific. Their professionalism, honesty, commitment to the success of hosting customers, and the growth of the Bitcoin network are unparalleled in the industry.”
The common stock value of Core Scientific will be determined according to a Chapter 11 bankruptcy reorganization plan approved by the bankruptcy court. According to reports, approval is expected in the fourth quarter of this year.
Sullivan Talks About the Collaboration
Adam Sullivan, CEO of Core Scientific, expressed his delight about the collaboration. “We are honored to expand our significant relationship with Bitmain. Together, we have made great efforts to professionalize our industry and charted the path for long-term growth in the Bitcoin network as Bitcoin is adopted worldwide. With this deal, the new miners secured will enhance the efficiency of our mining fleet and prepare for the Bitcoin halving event next year.”
Core Scientific filed for bankruptcy in December 2022. At the time, the company was generating positive cash flow but stated that it didn’t have enough to repay its debts. In March 2023, Core Scientific received court approval to borrow $70 million to finance its operations, resulting in a 7% increase in the company’s share price.
