Bitmain Invests $53.9 Million in Core Scientific
Bitcoin mining rig maker Bitmain has announced a significant investment of $53.9 million in Texas-based Bitcoin miner Core Scientific. This move aims to strengthen Bitmain’s position in the North American digital asset mining industry. Core Scientific, which filed for Chapter 11 bankruptcy in December 2022, will receive both equity and cash infusion from Bitmain. The investment will facilitate the acquisition of advanced and more energy-efficient bitcoin mining equipment. Additionally, Bitmain has signed a new hosting agreement with Core Scientific to support its mining operations.
Purchase Agreement Details
As part of the purchase agreement, Bitmain will supply Core Scientific with 27,000 Bitmain S19J XP 151 TH bitcoin mining servers. The transaction involves a payment of $23.1 million in cash and $53.9 million in Core Scientific common stock. The per-share value of the stock will be determined by a bankruptcy court-approved chapter 11 plan of reorganization, expected during Q4 2023.
A Strong Partnership
Core Scientific has been a longstanding partner of Bitmain since its establishment in 2017. Currently, the majority of miners in operation are Bitmain S19 models, with Core Scientific operating over 600,000 Bitmain miners in its data centers. Bitmain has also entrusted Core Scientific with the operation and maintenance of a significant portion of its miners.
Enhanced Efficiency and Growth
The newly acquired miners are expected to enhance Core Scientific’s mining fleet’s efficiency, preparing it for future events such as next year’s halving. The activation of the 27,000 units is anticipated to take place in Q4 2023, potentially boosting Core Scientific’s self-mining hash rate. This collaboration has the potential to significantly impact the North American Bitcoin mining landscape, driving innovation and growth in the industry.
Hot Take: Bitmain’s Investment in Core Scientific Strengthens North American Bitcoin Mining
Bitmain’s investment of $53.9 million in Core Scientific is a strategic move to solidify its presence in the North American digital asset mining industry. By providing both equity and cash infusion, Bitmain aims to support Core Scientific’s acquisition of advanced and energy-efficient bitcoin mining equipment. This collaboration between two industry leaders is expected to enhance mining efficiency and drive growth in the sector. As Core Scientific activates the 27,000 newly acquired miners, it positions itself for future events like next year’s halving. Overall, this partnership has the potential to make a significant impact on the North American Bitcoin mining landscape.
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