Core Scientific signs a 12-year contract with AI company CoreWeave, expected to yield over $3.5 billion in revenue.
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The Bitcoin mining firm also blamed “unusually cold temperatures” at its Rio Cuarto facility in Argentina for the fall in Bitcoin production.
Bitfarms’ crypto mining revenue fell 42% in May — the first full month since the Bitcoin halving took effect in mid-April.
The company reported a fall in Bitcoin production, from 263 Bitcoin (BTC) ($18.1 million) in April to 156 Bitcoin ($10.7 million) in May. In a June 3 statement, Bitfarm described it as the “first full month with post-halving economics.”
Similarly, the average amount of Bitcoin that Bitfarms earned per unit of computational power fell 45% from 44 exahashes per second (EH/s) to 24 EH/s.
Core Scientific announced a significant recovery in its financial performance for the first quarter of 2024, reporting a net income of $210.7 million, a stark contrast to the net loss of $0.4 million from the same period last year, driven by an increase in Bitcoin mining and hosting services. The company mined 2,825 bitcoins in […]
Riot’s net income was boosted by a 131% year-on-year increase in Bitcoin’s price despite the cryptocurrency becoming more difficult and expensive to mine.
Bitcoin (BTC) mining firm Riot Platforms reported a $211.8 million net income for Q1 2024 — a company record and a 1,000% increase from the same time last year — but missed analyst revenue estimates.
Riot’s first quarter results released May 1 show minin revenue spiked 55.4% year-on-year to $74.6 million, primarily driven by a 131% increase in Bitcoin’s price.
The firm's total revenue was $79.3 million, fallin 14% short of estimates by research firm Zacks.
If Marathon reaches its 50 EH/s target, it would mark more than a 100% increase in the firm’s hash rate since the start of 2024.
Bitcoin mining firm Marathon Digital has announced it is increasing its 2024 hash rate target from 35-37 exahashes per second to 50 EH/s, citing expanded capacity after recent acquisitions.
“Given the amount of capacity we have available following our recent acquisitions and the amount of hash rate [...] we now believe it is possible for us to double the scale of Marathon’s mining operations in 2024,” explained Marathon’s CEO Fred Thiel.
Thiel said its target would be “fully funded” as there is no need for the firm to raise additional capital to achieve its new target hash rate.
With just over three days remaining until the halving, Core Scientific has announced its plans to enhance its Texas mining facility by an additional 72 megawatts. This project is scheduled for completion by the end of the second quarter of 2024. This expansion aims to augment the company’s existing hashpower capacity. Core Scientific Plans for […]
Though subject to court approval, the two firms have agreed on a settlement in which Celsius will purchase a $45-million mining data center from Core Scientific for $14 million.
Crypto mining firm Core Scientific has announced an agreement with lending company Celsius Network to settle a legal battle which had been ongoing for months.
In a Sept. 15 announcement, Core Scientific said it had agreed to sell a Bitcoin (BTC) mining data center to Celsius in exchange for $14 million in cash to settle “all existing litigation”. The value of the Texas-based data center was roughly $45 million, and the deal will need court approval before being finalized.
The conflict between the two firms largely started in October 2022, when Core Scientific alleged Celsius had failed to pay its bills, while Celsius claimed the mining firm had not been deploying rigs as required under their contract. Both firms separately filed for Chapter 11 bankruptcy protection in the United States: Core Scientific in Texas in December 2022 and Celsius in New York in July 2022.
The Texas data center, which will likely go to Celsius’ mining arm if the deal is approved, was reportedly non-operational but capable of supplying 215 megawatts to BTC rigs. According to Celsius CEO Chris Ferrero, crypto mining firm US Bitcoin played a “key supporting role in structuring and executing the transaction” in addition to being a party to a winning bid for Celsius’ assets in bankruptcy proceedings.
Related: ‘Unjustly enriched’ — Core Scientific knocks back $4.7M claim from Celsius
The litigation between the two firms is separate from the criminal charges against former Celsius CEO Mashinsky and former chief revenue officer Roni Cohen-Pavon. Mashinsky was arrested in July and has pleaded not guilty to charges related to fraud and manipulating the market. Cohen-Pavon pleaded guilty to 4 charges on Sept. 13 and will be sentenced in December.
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Core Scientific said favorable market conditions have increased its liquidity position and its bankruptcy restructuring plan has been revised.
A restructuring plan for bankrupt Bitcoin (BTC) miner Core Scientific could be finalized by September and it expects to exit proceedings with an additional $46 million due to recent favorable market conditions.
In a May 22 filing in a Texas Bankruptcy Court, Core Scientific’s lawyers said its liquidity position has improved considerably since it filed for bankruptcy and as a result, it plans to file a reorganization plan in the near future.
The plan is currently being negotiated with key stakeholders, and according to the filing, the firm is “seeking to build as much consensus as possible” about how a new Core Scientific would look after emerging from its bankruptcy proceedings.
A Chapter 11 bankruptcy allows a firm to continue operating until stakeholders are able to agree on a restructuring plan which could involve measures such as the downsizing of business operations to reduce debt or the liquidation of assets to repay creditors.
The firm pointed to decreasing power costs, increasing Bitcoin prices and an increase in the blockchain’s hashrate as the primary market factors contributing to its liquidity boost.
On Dec. 21, 2022, when Core Scientific filed for bankruptcy, Bitcoin’s price was $16,904, according to CoinMarketCap. Since then, the price has shot up by over 60%, currently sitting at around $27,000.
Additionally, power prices have decreased by 24% since the petition date according to the filing, while the network hashrate has jumped by 54%.
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As a result of more favorable market conditions, Core Scientific estimates it will have an additional $46 million in funds once a restructuring plan is finalized, despite delays in the bankruptcy proceedings.
The miner is also expecting a significant windfall from Celsius Network claiming the bankrupt crypto lender owes it some $11 million.
The two firms are currently engaged in a lengthy court battle that began on Oct. 19, 2022, when Core Scientific first accused Celsius of failing to pay its power bills.
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Core Scientific has rejected a multi-million-dollar administrative claim from Celsius Network, arguing it's owed an even higher amount from the crypto lender.
Bankrupt Bitcoin (BTC) mining firm Core Scientific has objected to paying a $4.7 million administrative claim put forward by crypto lender Celsius Network, leading to a battle between the firms over contractual obligations.
According to the objection, which was filed in Texas bankruptcy court on May 5, Core Scientific has asked that Celsius Network’s $4.7 million administrative claims be rejected as the firm cannot prove it is entitled to one.
“Celsius’ request for allowance and immediate payment of the Celsius alleged admin claim ignores that Core has substantial claims against Celsius, which Core believes exceed the Celsius alleged admin claim,” wrote the objection.
For context, Core first signed a contract with Celsius in 2020 to host its cryptocurrency holdings in Core’s data centers. However, due to an increase in the price of power, Core passed these additional costs on to Celsius, an allowance that was reportedly stipulated in the original contract.
Despite Celsius initially paying these costs, the crypto lender ceased payments after it filed bankruptcy, Core Scientific claimed in the objection.
“If anyone has been unjustly enriched here, it is Celsius,” wrote Core Scientific in the objection. According to the now-defunct Bitcoin miner, Celsius has been “sitting on almost $8 million of money it owes to Core'' due to a “blatant post-petition violation” of the agreed-upon dispute resolution mechanism.
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In total, Celsius now allegedly owes Core Scientific approximately $11 million, a sum that accrues an additional $28,000 in fees and interest with each passing day, the Bitcoin mining firm's lawyers argued.
The conflict between the two firms has been raging since Oct. 19, when Core Scientific first accused Celsius of failing to pay its power bills, citing the non-payments as a significant factor in the liquidity issues that led to the embattled Bitcoin miner filing for Chapter 11 bankruptcy on Dec. 21.
“The millions of dollars Celsius shortchanged Core after Celsius’s bankruptcy filing plus the millions of dollars in litigation…significantly contributed to Core’s liquidity drain and eventual chapter 11 filing.”
On Dec. 28, Core Scientific filed a motion seeking approval to reject Celsius’ contracts, claiming the firm’s failure to pay its power bills constituted a material breach of contract. On Jan. 3 Celsius agreed to let Core Scientific shut down more than 37,000 Bitcoin mining rigs the miner was hosting for the crypto lender.
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The debtors appointed Adam Sullivan, a managing director at investment banking firm XMS Capital Partners, to assume the role of president amid the firm’s bankruptcy proceedings.
The debtors behind bankrupt cryptocurrency mining firm Core Scientific filed a motion for the approval of hiring a permanent president.
In an April 10 filing with United States Bankruptcy Court for the Southern District of Texas, Core Scientific said it was addressing “a gap in the Debtors’ management team” prior to the firm filing for bankruptcy in December 2022. The debtors appointed Adam Sullivan, a managing director at investment banking firm XMS Capital Partners, to assume the role of president amid the company’s bankruptcy proceedings.
“Mr. Sullivan is no stranger to the digital asset mining space and has extensive experience in the digital asset investment banking industry,” said the filing. “[He] will principally work on financial and strategic matters, including working with customer, supplier, and creditor relationships and assisting with the negotiation of a plan of reorganization in his capacity as a member of the management team.”
According to the debtors, Sullivan will receive a base salary of $500,000 as well as a guaranteed annual bonus of at least $500,000 in 2023 in his role as president. Soon-to-be former Core Scientific president Todd DuChene will stay on as the firm’s chief legal officer as well as assume the role of chief administrative officer.
Prior to its bankruptcy filing, Core Scientific reported it expected its “existing cash resources will be depleted by the end of 2022,” citing the low price of Bitcoin (BTC), increased electricity costs, and litigation with crypto lender Celsius. The mining firm had hosted more than 37,000 rigs for Celsius and alleged in court filings the crypto lender had failed to pay its power bills, contributing to its liquidity issues.
Today’s $CORZQ daily self-mined #Bitcoin for the last reported 24-hour period (10-APR-2023): 37.7 pic.twitter.com/ZlnlgfhzhW
— Core Scientific (@Core_Scientific) April 11, 2023
Related: Core Scientific to transfer $20M of equipment to settle bankruptcy dispute
Though moving through bankruptcy proceedings, the Texas firm continues to mine BTC despite disruptions to its supply of rigs. The bankruptcy court approved Core Scientific handing over more than 27,000 miners to the New York Digital Investment Group in February as part of a deal to pay off roughly $38 million in debt.
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