Core Scientific Partners with Bitmain in a $53.9 Million Deal
Digital asset miner Core Scientific has announced a new partnership with Bitmain, a major player in the supply of Bitcoin mining and Artificial Intelligence (AI) computing hardware. The partnership involves a $53.9 million investment from Bitmain, which will expand their existing relationship.
Under the agreement, Bitmain will supply Core Scientific with 27,000 Bitmain S19J XP 151 TH mining servers for $23.1 million. Additionally, Bitmain will invest $53.9 million in Core Scientific stock, the value of which will be determined by the bankruptcy court in Q4 2023.
This partnership comes as Core Scientific emerges from a bankruptcy proceeding and aims to reshape its operations. The cash/equity deal, combined with previous hosting agreements with Bitmain, will support Bitmain’s mining operations and contribute to the growth of the mining industry in North America.
Since 2017, Core Scientific has deployed over 600,000 Bitmain miners, primarily using Bitmain S19 models.
A Partnership for Future Growth
Both companies view this deal as beneficial for their respective futures, particularly in light of regulatory challenges and market forces impacting the crypto mining sector. Max Hua, CEO of Bitmain, emphasized their strong relationship with Core Scientific and their commitment to the success of Bitcoin’s network.
Core Scientific CEO Adam Sullivan sees this partnership as an opportunity to expand their fleet and prepare for future halvings, while also contributing to the long-term growth of the Bitcoin Network.
Core Scientific Focuses on Efficiency Amid Bankruptcy Case
Last week, Celsius and Core Scientific reached a tentative $45 million agreement related to the Cedarvale mining site. As Core Scientific navigates its bankruptcy case, the company is focused on maximizing the performance and efficiency of its existing machines. They aim to optimize their data centers and individual miners to increase profitability post-halving.
Hot Take: Core Scientific and Bitmain Partnership Strengthens North American Mining Industry
The partnership between Core Scientific and Bitmain represents a significant development for the mining industry in North America. With access to top-notch equipment and support from Bitmain, Core Scientific is well-positioned to expand its operations and contribute to the growth of Bitcoin’s network. The deal not only strengthens the relationship between the two companies but also highlights their commitment to professionalism, integrity, and the long-term success of the crypto mining sector.
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