Core Scientific seals $77M Bitmain deal for 27K Bitcoin mining rigs
The bankruptcy auction of the troubled Bitcoin mining firm Giga Watt has been finalized, with the crypto custody service provider Anchorage and former Giga Watt CEO Dave Carlson emerging as the winners of the assets. The auction, which took place on October 7, 2023, concluded with Anchorage and Dave Carlson gaining ownership of the firm's assets. This bankruptcy auction is part of the liquidation process for Giga Watt, which filed for bankruptcy in 2018. Giga Watt was originally known for its mining hosting services but ran into financial difficulties during the crypto market downturn, leading to its bankruptcy filing.
David Becker 
Cryptocurrency mining hardware manufacturer Bitmain and bankrupt crypto mining company Core Scientific have reached an agreement that combines equity and cash to finalize their deal for expanding mining facilities.
As part of the deal, Bitmain will provide 27,000 Bitcoin mining rigs for $23 million in cash and $53.9 million worth of common stock from Core Scientific. Additionally, Bitmain and Core Scientific have entered into a new hosting arrangement to support Bitmain's mining operations.
This deal was officially concluded in August and involves Bitmain supplying mining hardware in exchange for cash and equity as part of Core Scientific's restructuring plan. Other companies involved in the restructuring plan, including Anchorage, BlockFi, and Mass Mutual Asset Finance, also chose a mix of cash and equity options to settle their claims, with Anchorage being the exception.
The expansion and investment plan by Bitmain is expected to take effect in the fourth quarter of 2023, subject to approval by a judge. This hardware is expected to potentially add 4.1 exahashes to Core Scientific's hash rate. The two mining companies have also agreed to collaborate on upgrading Bitmain's last-generation miners hosted at Core Scientific's data centers to further enhance the company's productivity.
Core Scientific filed for Chapter 11 bankruptcy in December 2022, citing financial difficulties and the declining price of Bitcoin as the primary reasons behind its decision. The company had been facing challenges in the lead-up to its eventual collapse due to market turbulence.
