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- 1 Bitmain will supply a bankrupt Bitcoin miner with 27K latest-generation Bitcoin miners.
- 2 Bitmain’s investment in a bankrupt Bitcoin miner will be a part of a new supply contract.
On September 21, 2023, Core Scientific Inc. (OTC: CORZQ), a bankrupt Bitcoin mining company, announced that Bitmain will invest $53.9 Million in it. Bitmain is one of the leading manufacturers of digital currency mining servers. According to the recent announcement, they are expanding their longstanding relationship.
As of August 31, 2023, the bankrupt Bitcoin miner operated nearly 206k Bitcoin miners for both colocation and self-mining. It represents “a total energized hash rate of 22.0 exahashes per second at its data center facilities in five U.S. states.” Its self-mining operations produced 965 Bitcoins in August, and over 9K Bitcoins year to date through August 31, more than any other listed Bitcoin miner in North America.
New Hosting Agreement of Bitmain with Core Scientific
Bitmain and Core Scientific agreed on a combination of equity and cash. They will “finance the purchase of new and more efficient bitcoin mining equipment.” Separately, Bitmain has executed “a new hosting agreement” with Core Scientific. That will support the mining business of Bitmain.
According to the official press release, the deals demonstrate Bitmain’s ongoing commitment to the North American digital asset mining industry.
Additionally, under the terms of the purchase agreement, Bitmain will supply Core Scientific with 27k Bitmain S19J XP 151 TH Bitcoin mining servers. It will be in exchange for $23.1 Million in cash and $53.9 Million in Core Scientific common stock at a per-share value.
Although the share value will be determined in accordance with a bankruptcy court-approved Chapter 11 plan of reorganization, the approval of which is expected during the fourth quarter of this year. The S19J XP operates at “a high-efficiency level of 21.7 Joules per TH/s.”
The Statements by Company’s Officials
Max Hua, Bitmain CEO, said: “We look forward to deepening our strategic relationship with Core Scientific, our long-standing U.S.-based partner. Their professionalism, integrity, and commitment to the success of their hosting customers and to the growth of the Bitcoin Network is unsurpassed in the industry.”
“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,” Hua further added.
CEO of Core Scientific, Adam Sullivan also said “We are honored to expand our significant relationship with Bitmain. Together, we have worked tirelessly to professionalize our industry, charting a path for the long-term growth of the Bitcoin Network as Bitcoin adoption increases around the world.”
Sullivan further added, “Bitmain’s product quality, attention to service, and responsiveness are critical to our success in supporting the Bitcoin Network.”
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
