Core Scientific to Shut Down 37,000 Bitcoin Mining Rigs Belonging to Bankrupt Crypto Lender Celsius

Core Scientific plans to unopen down 37,000 bitcoin mining rigs belonging to now-defunct crypto lender Celsius, according to an statement betwixt the 2 bankrupt firms. Celsius owes Core Scientific astir $7.8 cardinal for vigor and hosting costs, arsenic the crypto lender has been incapable to marque regular payments arsenic outlined successful the hosting contract.

Celsius Owes Core Scientific $7.8 Million for Energy and Hosting Costs

Lawyers representing bankrupt bitcoin mining cognition Core Scientific person told the tribunal that crypto lender Celsius has not made payments connected its mining instrumentality hosting costs since July. The communicative was archetypal reported by Bloomberg, and Celsius reportedly owes astir $7.8 cardinal for costs associated with the machines.

Attorneys representing Core Scientific authorities that shutting down the bitcoin mining devices would prevention the steadfast a important magnitude of funds, and the institution could perchance marque $2 cardinal per period if it rents retired the hosting seats to different mining operation.

Core Scientific was 1 of the largest bitcoin miners successful the industry, and records from Nov. 7, 2022, amusement that 41% of the company’s servers are for customers paying for hosting services. The institution filed for Chapter 11 bankruptcy extortion connected Dec. 21, 2022, but it noted that the firm’s machines volition proceed to run successful bid to wage down debt.

Chris Koenig, a lawyer for Celsius, has stated that the crypto lender has agreed to unopen down the 37,000 bitcoin mining rigs and extremity the hosting contract. “We’re not seeking to marque a dollar disconnected of Core aft today,” Koenig remarked. The quality follows Celsius looking to widen lawsuit claims.

“Celsius is preparing to record a question aboriginal this week requesting an hold of the barroom date, which is the deadline to record a claim, from Jan. 3, 2023, until aboriginal February,” the institution said connected Twitter. “Our extremity is to supply relationship holders with further clip to record immoderate proofs of claim.” Celsius further stated that the question volition beryllium forwarded astatine a proceeding connected Jan. 10, 2023.

What bash you deliberation astir Core Scientific shutting down 37,000 of Celsius’ mining rigs? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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