On January 3 Bitcoin miner Core Scientific, which is in the process of bankruptcy, submitted to the court a document in which more than 37 thousand mining machines that were provided under the Celsius contract would be disabled.
Core Scientific is a mining company that filed for bankruptcy on December 21, 2022. One of the company's largest clients was Celsius. One of the reasons for the bankruptcy, according to the company, was non-payment under the contract from Celsius, which itself is in the process of bankruptcy. On December 28, Core Scientific filed a petition with a court, which was requested and required urgent consideration. The debt of Celsius exceeded $7.8 million.
”Covering Celsius’ increased power costs has already cost the Debtors almost $7.8 million to date. This amount excludes the December power pass through costs that are currently accruing daily. The Debtors cannot afford to shoulder the burden of Celsius’ unpaid power costs...” -it is written in the document.
According to the court document, the termination of the contract will allow the use of mining machines that are currently used by Celsius, which will bring the mining company an income of about 2 million per month and will have a positive impact on the financial situation of Core Scientific.
”Compounding this loss, the Celsius Contracts also prevent the Debtors from using the hosting capacity currently allocated to the Celsius machines—which is at a premium given that the Debtors do not have enough hosting capacity to cover demand—for other profitable opportunities that are immediately available to the Debtors and would generate an estimated $2 million per month in incremental revenue for the Debtors’ estates. As a result, rejecting the Celsius Contracts will also have a positive impact on the Debtors’ liquidity.”- it is written in the document.
On January 3, according to the document, all mining installations associated with Celsius were disabled.
Very soon, we will tell you again about how the bankruptcy of Celsius is going, because as we wrote earlier, an auction for the sale of the company's operating assets is planned in early January. Let's hope that this agreement will have a positive impact on the bankruptcy process of both companies. We will continue monitoring and report on the news.