Home Business Bankrupt Core Scientific to Buy 27K Bitmain Servers for $77M in Cash and Stock

Bankrupt Core Scientific to Buy 27K Bitmain Servers for $77M in Cash and Stock

by Mark Mendoza

Bankrupt Miner Core Scientific to Purchase 27,000 Bitcoin Mining Servers from Bitmain

Bankrupt miner Core Scientific has announced its plans to purchase 27,000 bitcoin (BTC) mining servers from Bitmain, a leading provider of cryptocurrency mining equipment. The deal, valued at $77 million, will see Core Scientific acquire the servers for $23.1 million in cash and $53.9 million in common stock, according to a press release.

This acquisition comes as part of Core Scientific’s bankruptcy plan, which was first mentioned last month. The plan includes the possibility of crypto firm Anchorage Digital also taking equity in the company. Core Scientific filed for bankruptcy last December after experiencing a drop in revenue and rising energy prices.

The purchase of these mining servers is a strategic move by Core Scientific to enhance its operations and strengthen its position in the Bitcoin network. The addition of these servers would potentially add 4.1 exahashes to the company’s hash rate, increasing its mining capabilities significantly.

The timing of this acquisition is particularly crucial, as Core Scientific aims to emerge from bankruptcy as early as this month, as stated by a federal judge overseeing the case in May. This purchase could potentially play a crucial role in the company’s recovery and future prospects.

In the press release, Bitmain CEO Max Hua expressed enthusiasm about the partnership, stating, “Core Scientific is an important contributor to the strength and stability of the Bitcoin Network, and we look forward to working closely with their team to help realize Bitcoin’s full potential.”

This deal highlights the continuous growth and development within the cryptocurrency mining sector, despite the challenges faced by some players in the industry. The demand for mining equipment remains strong, driven by the increasing interest and adoption of cryptocurrencies worldwide.

As the fourth quarter of the year approaches, Core Scientific eagerly awaits the delivery of its new mining servers. This significant investment in expanding its mining capabilities showcases the company’s determination to regain its financial stability and position within the market.

Overall, this acquisition presents a positive outlook for both Core Scientific and the broader cryptocurrency mining industry. It signifies the willingness of industry players to evolve and adapt to changing market conditions, ensuring the continued growth and potential of cryptocurrencies like Bitcoin.

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