Bitmain Invests $53.9 Million in Core Scientific to Support Mining Operations
According to CryptoPotato, Core Scientific, Inc., a leading provider of high-performance blockchain computing data centers and software solutions, has announced a $53.9 million investment from Bitmain, a global leader in manufacturing digital currency mining servers. This investment strengthens the existing relationship between the two companies.
Bitmain and Core Scientific have agreed to acquire new Bitcoin mining equipment and establish a new hosting agreement, demonstrating Bitmain's ongoing commitment to the North American digital asset mining sector. Max Hua, CEO of Bitmain, expressed enthusiasm about strengthening their strategic partnership with Core Scientific, a trusted U.S.-based collaborator. He praised Core Scientific's professionalism, integrity, and commitment to the success of their hosting customers and their contribution to the growth of the Bitcoin Network.
Under the terms of the purchase agreement, Bitmain will provide Core Scientific with 27,000 Bitmain S19J XP 151 TH bitcoin mining servers. In return, Bitmain will receive $23.1 million in cash and $53.9 million in Core Scientific common stock. The per-share value of the stock will be determined in line with a bankruptcy court-approved Chapter 11 reorganization plan, which is expected to receive approval in the fourth quarter of this year. The S19J XP operates at a high-efficiency level of 21.7 Joules per TH/s.
Adam Sullivan, CEO of Core Scientific, expressed his honor in expanding their significant partnership with Bitmain. He emphasized their joint efforts to professionalize the industry and pave the way for the long-term growth of the Bitcoin Network, especially in light of increasing Bitcoin adoption worldwide. Core Scientific has managed over 600,000 Bitmain miners across its data centers since its operation. Currently, 99% of the over 200,000 miners in operation, owned by Core Scientific and hosted for customers, are Bitmain S19 models.
The 27,000 units from the agreement are expected to be received and activated in the fourth quarter of 2023, potentially adding 4.1 exahashes to Core Scientific's self-mining hash rate. Additionally, the two companies have agreed to collaborate on upgrading Bitmain's prior-generation miners hosted at Core Scientific's data centers with S19J XP servers, further increasing the total hash rate. As of August 31, 2023, Core Scientific operated approximately 206,000 bitcoin miners for colocation and self-mining, generating a total energized hash rate of 22.0 exahashes per second. Its self-mining activities produced 965 bitcoin in August and 9,755 BTC year through August 31, surpassing any other listed bitcoin miner in North America.