Bitcoin Miner Core Scientific Plant to switch off 37,000 Celsius-Rigs

Bitcoin Miner Core Scientific Plant to switch off 37,000 Celsius-Rigs

The Bitcoin-Miner Core Scientific, which has been in difficulties, will close more than 37,000 crypto mining rigs by the bankruptcy crypto loan Celsius Network, since both companies finally reach an agreement in court.

Core Scientific, which hosts Celsius, reported bankruptcy in accordance with Chapter 11 in December and partially blamed the lender for his financial problems. Both companies have a hosting deal in which the mining company transfers some energy costs to Celsius.

the legal dispute

The two parties are in a legal dispute over the contract, since Core claims that Celsius has not paid for these services since the bankruptcy application according to Chapter 11 in July. In contrast, the lender argues that the miner had delivered less electricity to him than was necessary in accordance with his contract agreement.

Core had requested a trial on January 3 and explained that his contract with Celsius loses more than $ 28,000.

"We are not trying to earn a dollar with Core today. Celsius has agreed to have the facilities shut down, and both sides are about to complete their hosting relationship," said Chris Koenig, a lawyer of Celsius, in an insolvency hearing on Tuesday.

Celsius owes Core over $ 7.8 million

According to court files, Celsius Network, Core's largest customer, owes around $ 7.8 million for energy costs, which are connected to the boring islands by November. That would mean that the shutdown of the Celsius drilling systems Core could save thousands of dollars every day and generate more income if the miner leaves Celsius' place to another customer.

Experts believe that Core will probably win the case, and the judgment could serve as a precedent for other customers that violate the hosting contract agreements with the miner.

"Although the legal dispute continues, this is a strong profit for Core Scientific, which is probably confronted with further potential legal disputes from his hosting customers, whose costs have risen. Partners will be less inclined to bring them to trial if there is a precedent for switching off the machines during the ongoing legal dispute," said Ethan Vera, Chief Operations Officer of Crypto-mining service company Luxor Technologies.

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