Core Scientific will cease operations of its Celsius crypto mining hardware

Bitcoin miner Core Scientific (CORZ) recently terminated its contract with Celsius Mining, its largest customer with over 37,000 machines.

Core Scientific has announced that it will be shutting down mining rigs associated with Celsius Mining, adding to the latter’s woes. The 2020 hosting agreement is the subject of a legal dispute between the two businesses. Core Scientific claims that they are losing $2 million a month because of this partnership.

According to Bloomberg, the core says Celsius isn’t paying its fair share of the bill. However, Celsius counters that CORE raised its power tariff without prior consultation, in violation of the service agreement.

Core Scientific asked the Southern District of Texas bankruptcy court to dismiss Celsius Mining’s contracts on December 28, 2022. The petition claimed that Core Scientific could earn $2 million per month by finding new customers or using the area for its equipment if Celsius Mining’s machines were in place. Removed.

Judge David R. Jones concluded that the judgment to reject did not go against the automatic foreclosure on Celsius’ property. He said Celsius’ objection was an attempt to “take advantage” of the court in its bankruptcy case and was a “strategic” action.

Since the situation is critical and electricity costs $28,840 per day, Core Scientific requested a hearing. Celsius protested Core Scientific’s haste but supported contract termination and equipment return.

Celsius said the mining rigs in dispute are subject to the jurisdiction of the bankruptcy court for the Southern District of New York (SDNY), where Celsius’ case is now being handled. The request to reject them violates the automatic foreclosure on Celsius’ assets.

Core Scientific and Celsius both filed for bankruptcy

both core scientist And Celsius Network has filed for Chapter 11 bankruptcy. Celcius provided the bar date of January 3 – after filing for bankruptcy – as the deadline for all customers to file claims against debtors in bankruptcy. However, recently it filed a proposal to extend Times.

With more than 37,000 machines hosted, Celsius is not only one of Core’s largest customers, but also one of its largest secured note holders, with $54 million worth of secured convertible notes, according to Kirkland & Ellis. , or 10% of the total issuance. Attorney Chris Koenig, who is representing Celsius in CORE’s bankruptcy case.

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