Core Scientific to shut down thousands of Celsius Bitcoin mining rigs

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Core Scientific will shut down thousands of Celsius-linked bitcoin mining rigs. Core Scientific says mining rigs are costing the company $2 million in revenue per month, per court filing. Both companies filed for Chapter 11 bankruptcy last year amid the crypto bear market. LoadingSomething is being loaded.

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One of the world’s largest bitcoin miners will shut down thousands of Celsius Network-related mining rigs as part of the companies’ bankruptcy proceedings.

Core Scientific will stop hosting more than 37,000 platforms for which Celsius has not fully paid, according to a filing filed Tuesday. Celsius says Core Scientific has increased its electricity rate, which was not stipulated in the initial agreement of the two embattled companies.

Celsius lawyer Chris Koenig of law firm Kirkland & Ellis said “we have agreed that they can shut down our platforms effective today, and they cannot charge us , we’re not continuing to pay for it” during a bankruptcy hearing on Tuesday.

Core Scientific has asked a Texas bankruptcy court to terminate Celsius’ hosting contracts in late December, with the publicly traded miner alleging it can generate $2 million a month in revenue if the deal is terminated .

Celsius filed for Chapter 11 bankruptcy after a liquidity crisis in July, resulting from over-leveraged bets and promising customers high returns for depositing their tokens on its platform.

Core Scientific followed suit and filed for bankruptcy in December as miners were caught off guard by falling bitcoin prices and higher energy costs. Bitcoin is down more than 63% in the past year, according to Messari on Wednesday.

Asset manager BlackRock has committed $17 million to Core Scientific as part of a $75 million loan from secured convertible note holders of the bankrupt bitcoin miner, according to a Securities and Exchange Commission filing. United States in December. BlackRock is Core Scientific’s largest shareholder, according to FactSet.

Core Scientific and Celsius did not immediately respond to Insider’s request for comment.

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