Bitcoin mining company Alamy has reached an agreement to shut down percentile mining rigs

Core Scientific will shut down thousands of mining rigs, after the two bankrupt companies finally reached an agreement after months of dispute.

One of the largest companies in the world Bitcoin minerIt has Core Scientific Somewhat to blame Its financial troubles over its contract with Celsius, after the cryptocurrency lender filed for bankruptcy protection in July and stopped covering its share of utility bills. At one point, the company’s lawyers said Core was losing $53,000 a day on the hosting deal.

Own Core followed You go bankrupt in DecemberNow, the two companies have agreed to shut down 37,000C mining rigs. At a bankruptcy hearing on Tuesday, an attorney for Celsius said a deal to end the relationship completely was being finalized.

It comes after Core Scientific Judge David R. Jones to dismiss Celsius’s contract as an emergency measure in late December, claiming it could generate up to $2 million per month with the additional capacity.

The company said when it filed for bankruptcy last month that it would continue operations throughout the process.

bankruptcy path

In addition to its ties to Celsius, Core has faced the same difficulties as other publicly traded cryptocurrency mining companies over the past year, such as Bitcoin prices Remain dormant while energy costs skyrocket.

The Austin-based company went public on the Nasdaq via a special purpose acquisition company, or SPAC, in January 2022. Since its debut, its share price has fallen more than 98%.

A last-ditch effort to avoid bankruptcy was announced in mid-December, with A.J $72 million cash infusion From B. Riley Investment Bank.

But Michael Bruce, CEO of Core Scientific said in court documents that the company had already rejected B. Riley’s offer before it was announced, and that a committee after reviewing subsequent proposals concluded that the offer “does not provide a comprehensive solution to restructuring, and is likely to expose the company to litigation with other creditors.” […] It did not resolve some of the issues the company was facing, such as the litigation with Celsius.”

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