- Bitmain comes to the rescue of Core Scientific with a $53.9 million investment.
- It will help Core Scientific Purchase 27,000 mining devices.
Core Scientific is a Bitcoin mining firm that went bankrupt. So, at the start of the bear market, many mining firms in the crypto industry went bankrupt. But there’s help for Core Scientific.
Bitmain Comes to the Rescue of a Bitcoin Mining Firm
- Core Scientific, a Texas-based Bitcoin miner, made headlines in December 2022 when there was a sudden filing for bankruptcy. So, this is a Bitcoin mining firm that specializes in the mining of Bitcoin. They had some issues with their money management, which made them go bankrupt. So, Bitmain is trying to come to the rescue by putting a large amount of money into their operations.
- According to the details from the Bitcoin mining firm, they said they will use the investment from Bitmain to expand their business. Furthermore, there’s also an expansion of the long-standing relationship between the two companies as part of a supply contract. The two companies said they made an equity and cash-focused agreement to finance the purchase of new Bitcoin mining devices. This implies that one of the two companies will make provisions for Bitcoin mining devices. On the other hand, another of the two companies will provide cash.
- Bitmain will supply Core Scientific with 27,000 Bitcoin mining devices in exchange for $23.1 million in cash. So, the importance of Bitmain in this deal is that they will provide an infusion of around $53.9 million in Core Scientific common stock. This will be the best deal scenario for the bankrupt Bitcoin mining firm.
More Details About the New Deal Between Bitmain and Core Scientific
- Core Scientific filed for bankruptcy under Chapter 11 of the law. So, they are saying that they will make a good judgment of the company’s share price. It looks like the court will also have a say in their new share price. So, they are waiting for approval from the court in the fourth quarter of 2023.
- Bitmain CEO Max Hua said they were very happy with the new development with Core Scientific. Furthermore, he says the bankrupt Bitcoin mining firm is professional with the processes.
Next Line of Action for Crypto Mining Firm?
- Core Scientific is very ambiguous with its next line of action. So, according to them, they plan to take delivery of the 27,000 new Bitcoin mining devices in the fourth quarter of this year. The implication of this is that they want to add 4.1 exahash to its self-mining hash rate.
- In conclusion, Bitmain is trying to form the rescue of Bitcoin mining firm Core Scientific. So, they want to do this by supplying a good amount of Bitcoin mining devices. Furthermore, they will make a massive investment in the stock of this Bitcoin mining firm. Steps like this might lead to the rebirth of the firm.
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