Bitmain to Invest $54 Million in Bankrupt Core Scientific
Bitcoin mining giant Bitmain has announced its official investment of $54 million in bankrupt company Core Scientific. Bitmain is renowned as the world’s largest manufacturer of ASICs for Bitcoin mining.
Core Scientific: A Company on the Rise
Last year, Core Scientific filed for bankruptcy and sought to restructure its debt through Chapter 11 of US bankruptcy rules. Despite experiencing a decline in share price on the Nasdaq from $15 to $0.7, the company has managed to rebound and climb back up. With more than $1 billion in assets and over a thousand creditors, Core Scientific remains one of the largest blockchain data center providers in North America.
Bitmain: A Global Leader in Bitcoin Mining
Bitmain, a Chinese company founded in 2013, is recognized as the benchmark for Bitcoin mining machines. It is responsible for producing the most widely used ASICs through its ANTMINER brand. In addition to manufacturing miners, Bitmain controls two of the world’s largest BTC mining pools, BTC.com and Antpool.
The Partnership and Investment
In this partnership, Bitmain will invest $53.9 million in Core Scientific and provide them with 27,000 Antminer S19J XP 151 TH ASICs worth $23.1 million in cash and $53.9 million in common stock. The new machines are expected to be delivered in Q4 2023, adding 4.1 Ehash/s to Core Scientific’s hashrate.
Hot Take: A Fresh Start for Core Scientific
Thanks to Bitmain’s investment, Core Scientific can now expand its business and leave behind the challenges it faced during its bankruptcy. The partnership between the two companies strengthens their strategic relationship and further professionalizes the industry, contributing to the long-term growth of the Bitcoin Network.
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