Just In: Celsius and Core Sci Agree on $14M Litigation Settlement Deal
Celsius Mining LLC, a player in the Bitcoin mining domain, has inked a deal to purchase Core Scientific’s Cedarvale data center. Based in Ward County, Texas, the site boasts 215 megawatts of available power. Significantly, the deal includes constructions in progress, pivotal equipment, and designs crucial for the site’s completion. Moreover, this move strengthens Celsius’s operations in West Texas, pushing its self-mining capacity to 300 megawatts.
Legal Tussle Resolved
This new agreement signifies more than just a property acquisition. Consequently, it also marks the end of ongoing litigation between Celsius and Core Scientific, Inc. Adam Sullivan, CEO of Core Scientific, expressed relief at this resolution. He said,
“We are pleased to resolve all existing litigation related to Celsius Mining.”
Besides, he stressed Core Scientific’s dedication to refining its operational excellence.
Additionally, Chris Ferraro, the Interim CEO of Celsius Network, shared a similar sentiment. He emphasized the pivotal role of US Bitcoin Corp in orchestrating this transaction. He mentioned, “This outcome was made possible through the collaboration of Celsius and US Bitcoin Corp.”
Moreover, the Cedarvale deal also establishes the early groundwork for Celsius’s collaboration with Fahrenheit LLC. Hence, this partnership promises to inject the capital, technology, and leadership required for NewCo’s success.
US Bitcoin Corp Foresees a Bright Future
With its rich experience, US Bitcoin Corp will spearhead the construction of the Cedarvale facility. This venture, along with other engagements, is aimed at expanding and optimizing Celsius’s mining business.
Asher Genoot, President of USBTC, expressed confidence in the transaction’s success. He said,
“It reinforces our confidence in the potential that NewCo will capture through Fahrenheit’s leadership.”
However, this transaction won’t impact Core Scientific’s mining fleet. Despite the Cedarvale site’s mutually agreed value of $45 million, Celsius will part with $14 million in cash to Core Scientific.
As of August 31, 2023, Core Scientific operated approximately 206,000 Bitcoin miners. The company produced 965 Bitcoins in July alone, which makes it the largest listed Bitcoin miner in North America.
Given the voluntary Chapter 11 petitions both companies have filed, this agreement awaits approval from respective Bankruptcy Court jurisdictions.
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