Bitmain comes to the rescue of Core Scientific
Things are looking up for the American miner Core Scientific, which has been on the brink of bankruptcy for a year.
Bitmain enters Core Scientific’s capital
The American miner is set to purchase 27,000 latest-generation miners (S19J XP) from Bitmain. The 15 EH/s giant will pay $23 million in cash and $54 million in shares.
These new miners are expected to add 4.1 exahash to its hashrate by the end of the year. It would then be neck and neck with Marathon, which will soon have a hashrate of 21 EH/s.
In addition to the purchase of miners, the two companies have signed a new hosting agreement for Bitmain’s self-owned miners.
They have also agreed to work together to upgrade the miners hosted by Core Scientific to increase the company’s productivity.
“We are delighted to deepen our strategic relationship with Core Scientific, our long-standing American partner,” said Bitmain CEO Max Hua. “Their professionalism, integrity, and commitment to the success of their hosting customers and the growth of the Bitcoin network are unparalleled in the industry.”
Indeed, Core has seen more than 600,000 Bitmain miners pass through its facilities since its inception in 2017. Today, 99% of the more than 200,000 miners the company currently operates are Bitmain S19 models.
“We are honored to expand our relationship with Bitmain,” said Core Scientific CEO Adam Sullivan. “Together, we have worked tirelessly to professionalize our industry and grow the Bitcoin network.”
Core Scientific mined 965 bitcoins on its own in August. And 9,755 bitcoins since the beginning of the year. Unfortunately, all of this harvest had to be sold. In contrast, Marathon has reserves of over 13,000 BTC.
Maximize your Cointribune experience with our 'Read to Earn' program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.
Bitcoin, geopolitical, economic and energy journalist.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.