Bitmain and Anchorage Digital to Take Stakes in Core Scientific as Miner Exits Bankruptcy

The World’s Largest Crypto Mining Machine Maker Takes Stake in Core Scientific

The world’s largest crypto mining machine maker, Bitmain, is set to take a $54 million stake in Core Scientific as the miner emerges from Chapter 11 proceedings. Bitmain and crypto platform Anchorage Digital are expected to take equity stakes in Core Scientific as part of its bankruptcy reorganization plan. Core Scientific will purchase 27,000 units of Bitmain’s most powerful air-cooled model, the Antminer S19j XPs, for $77.1 million. The purchase will be funded by $23 million in cash and $54 million in equity in the company. Other creditors of Core Scientific have the option to convert their claims into equity or take on secured debt in the emerging company.

Key Points:

Bitmain and Anchorage Digital are expected to take equity stakes in Core Scientific as part of its bankruptcy reorganization plan.
Core Scientific will purchase 27,000 units of Bitmain’s Antminer S19j XPs for $77.1 million, funded by cash and equity in the company.
Creditors of Core Scientific can convert their claims into equity or take on secured debt in the emerging company.
Core Scientific is negotiating a settlement with lender Foundry to fully recover Foundry’s claim.
The company is also in negotiations for a $55 million equity rights offering for current holders of common stock.

Hot Take:

This investment by Bitmain and Anchorage Digital in Core Scientific shows their confidence in the future of the bitcoin mining industry. By taking equity stakes, they are positioning themselves to benefit from the potential growth and success of Core Scientific. This move also highlights the ongoing consolidation and strategic partnerships within the crypto mining sector, as companies seek to strengthen their positions and capitalize on emerging opportunities. Overall, it is a positive development for both Core Scientific and the crypto mining industry as a whole.