According to an agreement between the two bankrupt firms, Core Scientific will shut down 37,000 bitcoin mining rigs belonging to Celsius. Celsius, now a defunct crypto lender firm, owes Core Scientific approximately 7.8 million USD for energy and hosting costs. The crypto lender could not make regular payments as outlined in the hosting contract.
Celsius owes Core Scientific 7.8 million USD for energy and hosting costs
Bloomberg reported that lawyers representing bankrupt bitcoin mining operations Core Scientific had told the court that crypto lender Celsius had not made any payments on its mining machine hosting since July this year. Celsius is also reported to owe around 7.8 million USD for energy and hosting costs.
Attorneys from the side of Core Scientific stated that shutting down the bitcoin mining devices would save the firm a substantial amount of funds, and the company could make upto 2 million dollars per month if it rents out the hosting seats to any other mining operations. And, if it’s not done, they will lose millions every month.
Reportedly, Core Scientific was one of the largest bitcoin miners in the industry and records from Nov 7, 2022, show that 41 per cent of servers of the company are for customers paying for its hosting services. The company filed for its chapter 11 bankruptcy protection on Dec 21, 2022, but noted that its machine would continue to operate to pay out its debts.
Celsius Lawyers said they would not make a dollar off Core after today
Chris Koeing, a lawyer for Celsius, had told the court that the crypto lender has agreed to shut down the 37,000 bitcoin mining rings and end the hosting contract with Core Scientific. He also remarked that they seek not to make a dollar off the core from now on. The news follows Celsius looking to extend customer claims.
Celsius said on Twitter that they are planning to file a motion later this week requesting an extension of the bar date, which is the deadline to file a claim from Jan 3, 2022, until early February. They also said that their main goal is to provide the account holder some additional time to file any proof of claims, and the motion will be forwarded at a hearing on Jan 10, 2023.
What are your thoughts as Core Scientific will shut down 37,000 bitcoin mining rigs? Do you think the court will accept Celsius’s request to extend the deadline to file a claim? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.
Also Read: US authorities seize FTX’s Robinhood shares worth $460M.
