Core Scientific to Shut Down 37,000 Bitcoin Mining Rigs Belonging to Bankrupt Crypto Lender Celsius
Core Scientific plans to close down 37,000 bitcoin mining rigs belonging to now-defunct crypto lender Celsius, based on an settlement between the 2 bankrupt companies. Celsius owes Core Scientific roughly $7.8 million for power and internet hosting prices, because the crypto lender has been unable to make common funds as outlined within the internet hosting contract.
Celsius Owes Core Scientific $7.8 Million for Energy and Hosting Costs
Lawyers representing bankrupt bitcoin mining operation Core Scientific have advised the court docket that crypto lender Celsius has not made funds on its mining machine internet hosting prices since July. The story was first reported by Bloomberg, and Celsius reportedly owes roughly $7.8 million for prices related to the machines.
Attorneys representing Core Scientific state that shutting down the bitcoin mining units would save the agency a considerable quantity of funds, and the corporate might doubtlessly make $2 million per 30 days if it rents out the internet hosting seats to a different mining operation.
Core Scientific was one of many largest bitcoin miners within the business, and records from Nov. 7, 2022, present that 41% of the corporate’s servers are for patrons paying for internet hosting companies. The firm filed for Chapter 11 chapter safety on Dec. 21, 2022, nevertheless it famous that the agency’s machines will proceed to function as a way to pay down debt.
Chris Koenig, a lawyer for Celsius, has said that the crypto lender has agreed to close down the 37,000 bitcoin mining rigs and finish the internet hosting contract. “We’re not seeking to make a dollar off of Core after today,” Koenig remarked. The information follows Celsius trying to prolong buyer claims.
“Celsius is preparing to file a motion later this week requesting an extension of the bar date, which is the deadline to file a claim, from Jan. 3, 2023, until early February,” the corporate said on Twitter. “Our goal is to provide account holders with additional time to file any proofs of claim.” Celsius additional said that the movement will likely be forwarded at a listening to on Jan. 10, 2023.
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