Feb 04, 2023
Core Scientific Pays Off $38.6M Debt With 27,000 Mining Machines
Core Scientific, a crypto mining firm, has reached an agreement with the New York Digital Investment Group (NYDIG) to pay off a debt of $38.6 million by transferring 27,000 mining machines used as collateral. The company has filed for approval from the United States Bankruptcy Court for the Southern District of Texas to make the transfer.
Core Scientific believes that the long-term benefits of paying off its debt outweigh the immediate loss in revenue. To mitigate some of the losses, the firm is shifting its operations to a smaller but more efficient fleet of mining rigs. These rigs are currently in storage and not mining Bitcoin (BTC). Additionally, the company is looking to install the S19 XP mining rigs, which are not currently in use.
The company filed for Chapter 11 bankruptcy on Dec. 21. The filing occurred after the firm revealed in a filing with the Securities and Exchange Commission that it was facing financial distress due to increased electricity costs, a rise in the global Bitcoin hash rate, low Bitcoin prices and the Celsius bankruptcy.
On Jan. 31, the bankruptcy court approved Core Scientific’s plan to borrow $70 million from investment bank B. Riley. This loan will replace the firm’s existing loan and provide the company with the necessary funds to continue operations.
Core Scientific is also exploring other options to increase its profitability and sustainability, such as NFT promotion, Twitter NFT marketing, and NFT marketing agency services. The company is looking to leverage the growing popularity of NFTs to promote its products and services. Additionally, Core Scientific is looking to partner with a web3 agency to help it sell NFTs and create a more robust web3 presence.
Overall, Core Scientific is looking to use the loan from B. Riley and its NFT promotion strategies to become more profitable and sustainable. The company believes that these strategies will help it gain a competitive edge in the crypto mining industry and ensure its long-term success.
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