Core Scientific Can Sell A Mine Under Construction With Up To 1 Gigawatt

Key Points:

• Core Scientific can sell a facility under construction with up to 1 Gigawatt of capacity.
• The move followed the bankruptcy filing on the same day.
• The mining company was able to function normally during the bankruptcy process thanks to $75 million in funding.

The largest cryptocurrency mining company in the United States has announced that Core Scientific can sell some facilities under construction with a capacity of up to 1 Gigawatt after filing for Chapter 11 bankruptcy on December 21, according to The Block.

“The likelihood of us selling assets that we are currently operating at is close to zero,(…). The likelihood of us selling assets that are under development where we have power capacity and land and substations is high.”

Russell Cann, chief mining officer, told The Block.

The company warned in October that it could run out of money at the end of the year and bankruptcy was an option, but things seemed to have changed last week, with B. Riley offering the miners the package $72 million in financing to extend Core Science’s life by two years and save the company from bankruptcy.

However, the miner also revealed it had received a similar debtor financing offer from its convertible bond shareholders, totaling $75 million, according to a statement obtained by Reuters. released on Wednesday. This means that Core Scientific will continue to operate as normal, with both mining and storage profitable.

Core Scientific is currently the largest in the industry with around 800 to 850 megawatts of mining capacity. The mine it can sell is expected to come online in 2023, with a mining capacity of up to 1 billion watts.

As was updated in an earlier Coincu News article, the largest U.S traded crypto mining company filed for Chapter 11 bankruptcy protection in Texas, U.S.A. in the early hours of the December 21 local time and plans to convert most of the debt into equity.

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