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Core Scientific Enters Agreement with Celsius Mining

Core Scientific sells its Cedarvale Bitcoin mining data center site to Celsius Mining for $14 million, settling ongoing litigation and allowing Celsius to expand its mining operations in Texas.

Key Points

  • Core Scientific sells its Bitcoin mining data center site, “Cedarvale,” in Texas to Celsius Mining for $14 million, settling ongoing litigation.
  • Cedarvale site, with 215MW capacity, includes under-construction buildings and necessary equipment, enhancing Celsius’s mining portfolio.
  • U.S. Data Mining Group (USBTC) will oversee Cedarvale’s construction and operation, optimizing Celsius’s mining business.
  • This transaction doesn’t impact Core Scientific’s mining fleet, with Cedarvale not part of their three-year roadmap; both companies are in Chapter 11 restructuring.

Core Scientific, Inc. (OTC: CORZQ), a prominent player in blockchain computing data centers and software solutions, has reached an agreement with Celsius Mining LLC, a Bitcoin mining subsidiary of Celsius Network.

The agreement involves the sale of Core Scientific’s Bitcoin mining data center site in Ward County, Texas, known as “Cedarvale,” to Celsius. In addition to the sale, the two companies have agreed to settle all ongoing litigation for a total cash consideration of $14 million.

Cedarvale Site and Ongoing Litigation

The Cedarvale site, which is currently under development and non-operational, has a capacity of 215 megawatts of available power.

The site includes buildings under construction, equipment, and designs necessary for its completion.

The approval of this agreement will lead to a settlement and mutual release concerning all existing litigation between Core Scientific and Celsius Mining.

Adam Sullivan, CEO of Core Scientific, expressed his satisfaction with the resolution of all existing litigation related to Celsius Mining. He highlighted the company’s commitment to improving operational excellence and expanding its Texas data centers.

The acquisition of the Cedarvale site is a strategic move for Celsius Mining, as it sets the stage for its collaboration with Fahrenheit LLC, its previously announced Plan Sponsor.

This acquisition further strengthens Celsius’s commitment to West Texas, expanding its self-mining portfolio to 300 megawatts.

Construction and Optimization

U.S. Data Mining Group, Inc., also known as US Bitcoin Corp (USBTC), will oversee the construction of the Cedarvale facility. USBTC has been chosen to manage and operate Celsius’s mining assets and to scale and optimize its mining business.

Asher Genoot, President and Co-Founder of USBTC, expressed satisfaction with the transaction, emphasizing its significance for NewCo’s mining division and the potential value it brings to the Celsius estate.

Concluding Thoughts

It’s important to note that this transaction does not affect Core Scientific’s mining fleet. The Cedarvale site, valued at $45 million, is not part of Core Scientific’s three-year roadmap, which was made public in June 2023.

As of August 31, 2023, Core Scientific operated approximately 206,000 Bitcoin miners, surpassing any other listed Bitcoin miner in North America.

Both Core Scientific and Celsius have filed for Chapter 11 restructuring, making the proposed agreement subject to approval in both Bankruptcy Court jurisdictions.