bitmaincrypto mining hardware manufacturer, e Basic ScientificThere is a mining company that went bankrupt acceptance combination of shares and cash to finalize the agreement for the expansion of mining facilities.
The agreement between the two companies will see Bitmain supply 27,000 Bitcoin mining rigs (Bitcoin) $23 million in cash plus $53.9 million in stock of the bankrupt company. In addition to purchasing mining hardware, Bitmain and Core Scientific signed a new hosting agreement to assist Bitmain’s mining operations.
The deal was finalized early last monthThat’s when a court document highlighted Bitmain’s plan to sell mining hardware in exchange for cash and stock as part of its Core Scientific restructuring plan. Besides Bitmain, the restructuring plan also included: Anchorage, BlockFi and Crowdinvested Asset Finance. Apart from Anchorage, three other companies also chose to use a combination of cash and stock options to pay off their debts.
Bitmain’s expansion and investment plan will come into effect from the fourth quarter of this yearThe judge’s approval is expected in the last quarter.
After approval, additional hardware will potentially add 4.1 exahash to Core Scientific’s hashrate. The two crypto mining companies have also agreed to collaborate to upgrade Bitmain’s latest generation miners hosted in Core Scientific’s data centers to further increase the company’s productivity.
Core Scientific filed for Chapter 11 bankruptcy in December 2022, He cited the financial crisis and the drop in Bitcoin price as the main reasons behind his decision. The company had begun to experience problems in the weeks before the crash in December due to market turmoil.