Celsius and Core Scientific Reach $45 Million Settlement Deal Following Mining Facility Dispute

cryptonews.com:

Digital asset miners Core Scientific and Celsius Mining have struck a $45 million deal over the Cedarvale mining site after months of litigation.

According to the court filing, both companies have resolved to settle all disputes in a deal that they describe as beneficial to the entire mining ecosystem. 

The arrangement would see Celsius pay $14 million in cash while the remainder will be due through adjusted claims. The agreement does not cover convertible notes Celsius holds against Core.

Amidst its bankruptcy proceedings, Celcius has agreed to purchase the Texas mining facility in a bid to boost its mining capacity for the benefit of its creditors in the long run. 

“We are committed to driving further value to the Celsius estate before emergence and are eager to lead the development of the Cedarvale assets.”

Since both companies are in the middle of bankruptcy proceedings, all agreements reached so far are tentative until approved by the court.

Celsius and Core Scientific delved into a legal battle for months over contractual obligations including multiple filings of fees on the back of several allegations.

Celsius sought to claim $312 million alongside other demands after Core shut down its mining rigs in January citing failure to pay energy bills.

On their part, Core claims that failure to pay the power bills nullifies all contracts as it goes to the root of the agreement which was a major factor in the firm’s bankruptcy declaration.

Per court filings, Core hoped to generate about $2 million each month from the site where it hosted Celsius mining rigs.

The crypto winter which has dragged on for months hit miners the hardest according to several analysts as they resulted in selling their Bitcoin (BTC) reserves, selling key