Celsius to purchase $45M Core Scientific mining facility as part of bankruptcy settlement News ▸ US ▸ Celsius ▸ Bitcoin ▸ Bankruptcy
Celsius to purchase $45M Core Scientific mining facility as part of bankruptcy settlement
Celsius moves to buy Cedarvale mining site for $45M, betting on increased mining capacity amid bankruptcy proceedings.
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Updated: Sep. 15, 2023 at 12:03 pm UTC
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Celsius has filed a motion in its bankruptcy case to resolve ongoing litigation and disputed contracts and claims, seeking court approval of a settlement agreement and purchase agreement with Core Scientific.
The information was revealed in a new filing detailed in the Celsius bankruptcy hearing, outlining the mutual agreement to settle most of their respective claims, except specific convertible note claims that Celsius holds against Core.
Under the terms of the agreements, Celsius has agreed to purchase a mining site named Cedarvale from Core, a transaction valued at $45 million. Of this sum, $14 million will be paid in cash by Celsius, while the remaining $31 million will be obtained from releasing claims against Core. Celsius believes the acquisition of Cedarvale, which has the potential to increase its mining capacity by 215 megawatts once entirely constructed, will be of significant benefit to its creditors and stakeholders.
In addition to Cedarvale, Celsius will also receive a license to use specific intellectual property and mining designs from Core. This move is expected to facilitate the operation of Cedarvale and the construction of similar facilities in the future as part of the deal, which also comprises Celsius assuming specific contracts from Core related to Cedarvale.
Celsius is currently under bankruptcy, so court approval is required for the settlement and purchase agreements. Celsius has petitioned the bankruptcy court to approve these agreements, citing them as a reasonable exercise of its business judgment. Core has also filed a similar motion in its own bankruptcy case, seeking court approval of this deal. The agreements are contingent on approval by both bankruptcy courts.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.
Core Scientific
Core Scientific is a leader in infrastructure and software solutions for Artificial Intelligence and Blockchain.