Core Scientific to Shut Down 37,000 Bitcoin Mining Rigs Belonging to Bankrupt Crypto Lender Celsius – Mining Bitcoin News
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Core Scientific plans to shut down 37,000 bitcoin mining rigs belonging to now-defunct cryptolender Celsius under a deal between the two bankrupt companies. Celsius owes Core Scientific about $7.8 million in energy and hosting costs due to the crypto lender’s failure to make regular payments under the hosting agreement.
Celsius owes Core Scientific $7.8 million for energy and hosting costs
Lawyers representing bankrupt bitcoin mining operation Core Scientific have told a court that crypto lender Celsius has not paid the costs of hosting the miner since July. The story was first reported by Bloomberg, and Celsius reportedly owes about $7.8 million in costs related to the machines.
Lawyers representing Core Scientific say that shutting down the bitcoin mining rigs would save the company a significant amount of money, and the company could potentially earn $2 million a month if it leases the hosting sites to another mining operation.
Core Scientific was one of the largest bitcoin mining companies in the industry, and as of 7/11/2022 data shows that 41% of the company’s servers are dedicated to customers who pay for hosting services. The company filed for Chapter 11 bankruptcy protection on December 21, 2022, but stated that the company’s machines will continue to operate to pay off debts.
Celsius’ attorney Chris Koenig has announced that the cryptolender has agreed to shut down 37,000 bitcoin mining rigs and terminate the hosting agreement. “We’re not looking to get the dollar out of Core after today,” Koenig noted. The news follows Celsius looking to expand customer requirements.
“Celsius is preparing to file an application later this week requesting an extension of the postponement date, which is the deadline for filing a lawsuit from January 3, 2023 to the beginning of February,” the company says. said on Twitter. “Our goal is to give account holders additional time to provide any evidence.” Celsius also stated that the presentation will be forwarded in the session on January 10, 2023.
What do you think about Core Scientific shutting down the 37,000 Celsius mining machine? Let us know what you think about this topic in the comment section below.
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