Core Scientific's Bitmain Miner Purchase: A Bitcoin Mining Juggernaut Emerges

Zinger Key Points
  • The new servers aim to enhance Core Scientific's mining fleet efficiency for future events.
  • The 27,000 units are expected to activate in the fourth quarter of 2023.

Bankrupt Bitcoin BTC/USD miner Core Scientific Inc CORZQ announced the purchase of 27,000 Bitcoin mining servers from Bitmain as part of a deal valued at $77 million.

The deal also includes $23.1 million in cash and $53.9 million in Core Scientific common stock, the company announced Thursday.

The stock's per-share value will be determined in line with a bankruptcy court-approved Chapter 11 plan of reorganization, expected to gain approval in the coming quarter.

This development came as the global conversation around digital assets gains momentum, a topic that will be further explored at Benzinga's Future of Digital Assets conference on Nov. 14. The conference aims to shed light on the evolving landscape of digital assets and the future of decentralized finance.

Bitmain CEO Max Hua expressed his enthusiasm about deepening ties with Core Scientific, praising its "professionalism, integrity, and commitment" to the growth of the Bitcoin Network.

Core Scientific CEO Adam Sullivan reciprocated the sentiment, emphasizing the collaborative efforts of both companies in professionalizing the industry and supporting the Bitcoin Network's long-term growth.

Since its inception in 2017, Core Scientific operated more than 600,000 Bitmain miners across its data centers. Currently, 99% of the 200,000 miners they operate, including those owned by Core Scientific and those hosted for customers, are Bitmain S19 models.

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Sullivan further highlighted Bitmain's pivotal role in Core Scientific's success, particularly noting the quality and efficiency of Bitmain's products.

The newly acquired servers are expected to enhance Core Scientific's mining fleet's efficiency, especially in anticipation of the upcoming Bitcoin halving event.

The 27,000 units are slated for activation in the fourth quarter of 2023, potentially adding 4.1 exahashes to Core Scientific's self-mining hash rate.

Additionally, both industry giants have agreed to upgrade previous generation miners at Core Scientific's data centers with the S19J XP servers, aiming to further boost the company's total hash rate.

As of the end of August 2023, Core Scientific operated around 206,000 Bitcoin miners and produced 9,755 Bitcoin year-to-date.

Read Next: One Human Error Wiped Out Billions In Bitcoin Value: Ex-Alameda Research Employee

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Posted In: CryptocurrencyM&ANewsPenny StocksMarketsAdam SullivanBankruptcy proceedingsbitcoin halvingbitcoin miningBitcoin networkBitmaincryptocurrency miningDigital Assetshash rateMax HuaNorth america
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