Feb 04, 2023
Core Scientific Pays Off $38.6M Debt With Mining Machines
Core Scientific, a crypto mining firm, has reached a deal with the New York Digital Investment Group (NYDIG) to pay off an outstanding debt of $38.6 million. The payment will be made with 27,000 mining machines that have been used as collateral. The company is now awaiting the approval of the United States Bankruptcy Court for the Southern District of Texas, which is in charge of the proceedings.
The firm accepted that the move would negatively impact its revenue, but Core Scientific believes that the long-term benefits of paying off its debt outweigh the immediate loss. The crypto-mining firm is also shifting its operations to a smaller but more efficient fleet of mining rigs that were in storage and not mining Bitcoin (BTC). To mitigate some of the losses, the company plans to install the S19 XP mining rigs, which are not currently in use.
Core Scientific filed for Chapter 11 bankruptcy on Dec. 21, months after the company revealed that it was going through financial distress in a filing with the Securities and Exchange Commission. The company cited increased electricity costs, an increase in the global Bitcoin hash rate, low Bitcoin prices and the Celsius bankruptcy as the reasons for its financial struggles.
On Jan. 31, the bankruptcy court approved the mining company’s plan to borrow $70 million to replace its existing loan. With this, Core Scientific can take out a loan from investment bank B. Riley which is also one of the firm’s creditors.
The company is now focusing on the promotion and marketing of its NFTs, and has engaged a web3 agency to help them with the process. The agency specializes in NFT marketing and promotion, and will be using Twitter and other social media platforms to spread awareness about the NFTs and to help the company sell them.
Core Scientific has also been investing in the development of its NFTs, and has been working with a variety of developers to create unique NFTs that can be used as collectibles, digital art, and even as a form of currency. The company believes that by investing in the development of their NFTs, they will be able to create a larger customer base and generate more revenue.
The crypto mining firm is hoping that the NFTs will be able to help them recover from their financial struggles and become profitable and sustainable in the long run. With the help of the web3 agency and their NFT marketing efforts, Core Scientific is confident that they will be able to reach their goal.
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