Core Scientific to Close Mining Rig Operations of Bankrupt Crypto Lender Celsius

Core Scientific is to terminate 37,000 bitcoin mining rigs owned by now-defunct crypto lender Celsius. According to an agreement between the two firms, Celsius owes Core Scientific a total of $7.8 million in power and hosting expenses as the cryptocurrency lender was unable to make regular payments.

Celsius Owing Core Scientific $7.8 Million in Power and Accommodation Costs

As revealed in court by lawyers representing bankrupt bitcoin mining operation Core Scientific, the crypto lender Celsius had not paid for the hosting of its mining machines since July. This news was first reported by Bloomberg and according to reports, the company owes $7.8 million in costs related to the machines.

Lawyers for Core Scientific stated that the firm would be able to save a great deal of money by shutting down its bitcoin mining rigs. Furthermore, the company could generate around $2 million per month by renting out the hosting sites to another mining company.

Core Scientific, with records dating back to 2008, was one of the largest bitcoin miners in the sector. Documents from November 7, 2022 show that 41% of the machines were servers for customers who pay for hosting services. The company filed for Chapter 11 bankruptcy protection December 21, 2022, however it was noted that the company’s machines would continue to run to repay the debt.

Chris Koenig, a lawyer for Celsius, has stated that the crypto lender has agreed to close down 37,000 bitcoin mining rigs and terminate the hosting contract. “We are not looking to make a dollar on Core after today,” Koenig said. The news follows Celsius’s attempts to address customer complaints.

“Celsius is preparing to file a motion later this week requesting an extension of the deadline, which is the deadline to file a claim, from January 3, 2023 to early February,” the company said via Twitter. “Our goal is to provide account holders additional time to file any proof of claim.” Celsius is set to submit the motion to a hearing on January 10, 2023.

What do you think about the closures of 37,000 rigs by Core Scientific and Celsius? Let us know your thoughts on this topic by leaving comments below.

jamie redmann

Jamie Redman is the news lead at Bitcoin.com News, a fintech journalist who lives in Florida. Redman has been an active member of the cryptocurrency field since 2011 and is passionate about Bitcoin, Open Source Code, Decentralized Applications, and Open Source Code. He has written more than 6,000 articles since September 2015 for Bitcoin.com News. Learn more about the disruptive protocols that are emerging today.