Bitmain Invests $53.9 Million in Core Scientific
Bitmain, a leading crypto mining rig manufacturer, has announced a $53.9 million investment in Texas-based Bitcoin mining company Core Scientific. This investment is part of an ongoing supply contract between the two companies. As per the deal, Bitmain will provide Core Scientific with 27,000 Bitcoin mining servers, and in return, Core Scientific will pay $23.1 million in cash and issue $53.9 million worth of its common stock to Bitmain.
Core Scientific filed for Chapter 11 bankruptcy in December 2022 but expects to establish its share price during financial restructuring, with the plan likely to be approved in Q4 of this year. Additionally, Bitmain has entered into a new hosting agreement with Core Scientific, with CEO Max Hua praising the company for its professionalism and dedication.
Core Scientific Focuses on Efficiency Amid Bankruptcy
Last week, Core Scientific reached a tentative agreement with Celsius worth $45 million, involving a cash payment of $14 million and adjusted claims for the Cedarvale mining site. The company is optimizing its operations by relocating machines within its facilities to enhance profitability after the halving event.
As of August, Core Scientific managed 206,000 Bitcoin mining machines across its U.S. locations, achieving a hash rate of 22 exahashes per second. The company mined 965 BTC in August alone, bringing its total for the first eight months of 2023 to 9,755 BTC.
Hot Take: Bitmain’s Investment Strengthens Core Scientific’s Position
The investment from Bitmain provides a significant boost to Core Scientific as it navigates through bankruptcy proceedings. With the influx of funds and new mining servers, Core Scientific can continue its operations and expand its computing power. The company’s focus on efficiency and optimization demonstrates its commitment to remaining competitive in the Bitcoin mining industry. By strategically relocating machines within its facilities, Core Scientific aims to maximize profitability in a post-halving landscape. With a strong hash rate and impressive BTC mining numbers, Core Scientific is solidifying its position as a leading bitcoin miner in North America.
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