Core Scientific Filed An Emergency Motion To Fire-Sell $6.6 Million In Bitmain Coupons
- According to court documents, insolvent Bitcoin mining company Core Scientific filed an emergency motion to sell Bitmain vouchers valued at $6.6 million.
- Certain restrictions placed on the vouchers render them unusable for Core Scientific’s operations.
- In particular, the coupons cannot be redeemed for cash and can only be used to pay 30% of any new order of S19 Miners from Bitmain.
Core Scientific submitted a proposal on January 28 to sell $6.6 million worth of Bitmain coupons to settle its obligations. With Bitmain and two other potential bidders who could be interested in the sale, the now-bankrupt US-based Bitcoin miner has been in communication.
According to the complaint, certain restrictions placed on the vouchers render them unusable for Core Scientific’s operations. In particular, the coupons cannot be redeemed for cash and can only be used to pay 30% of any new order of S19 Miners from Bitmain.
S19 Miners are the only ones eligible for the discounts; these models have a lower output hash rate than Bitmain’s more current versions.
“The Debtors do not believe that utilizing their liquidity to purchase new S19 Miners, even with the availability of the Bitmain Coupons, is the best use of the Debtors’ cash,” claimed the company.
Additionally, the Bitmain coupons are scheduled to expire in March or April 2023, when the business expects to have exited from its Chapter 11 restructuring. Additionally, Core Scientific stated that it would not purchase any more S19 Miners either during or after Chapter 11.
The complaint claims that the crypto winter caused a flood of S19 Miners to be listed for sale on the secondary market, which lowered prices.
“As such, recent transactions for S19 Miner coupons on the Coupon Exchange have occurred at values of between 15% and 25% of the coupon’s face value.”
The price of Bitcoin decreased in 2022 as a result of many macroeconomic variables. Core Scientific, a Bitcoin miner, was one of the crypto companies that experienced significant losses as a result of the protracted crypto winter.
Reports claim that Core Scientific suffered losses of $434.8 million in the fourth quarter of 2022. By the end of the year, it had reached $1.33 billion in debt. As a result, Core Scientific declared bankruptcy under Chapter 11 in December 2022.
Join us to keep track of news: https://linktr.ee/coincu