Bitmain to Invest $54 Million in Bankrupt Bitcoin Mining Company Core Scientific
Digital asset miner Core Scientific announced a new partnership with Bitmain, a major player in the supply of Bitcoin mining and Artificial Intelligence (AI) computing hardware.
As part of the deal, Bitmain will invest $53.9 million in the company expanding their long-standing relationship.
Per the agreement, Bitmain will supply the crypto miners 27,000 Bitmain S19J XP 151 TH mining servers for $23.1 million and an investment of $53.9 million in Core Scientific stock, the value of which is decided by the bankruptcy court in Q4 2023.
As it emerges from a bankruptcy proceeding, Core Scientific would reshape its operations leveraging on the cash/equity deal and previous hosting agreements with Bitmain to support the latter’s mining operations.
This development could see the mining industry in North America deepen further with top-notch equipment and a clear roadmap for expansion.
Since it commenced mining operations in 2017, Cire has deployed over 600,000 Bitmain miners with about 99% of the company’s hosting customers being Bitmain S19 models.
Both companies announced the deal as beneficial to their course over the next few years at a time when the crypto mining sector is taking hits from regulators and biting market forces.
Max Hua, Bitmain’s CEO speaking on the deal stressed their long-standing relationship with Core and a good track record over the years.
“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 the growth of the Bitcoin (BTC) Network is unsurpassed in the industry.”
Hua added Core Scientific is essential to the Bitcoin network and needed to establish the
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