Core Scientific to disable 37,000 Celsius ASIC miners

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Data center operator Core Scientific, which is in bankruptcy proceedings, is going to shut down 37,000 mining devices of crypto lender Celsius due to lack of payment.

Core Scientific remains one of the largestmining companies in the USA, which hosts third-party devices. However, despite the positive cash flow, the company filed for bankruptcy court. One of the main reasons for this decision was delays in payments from Celsius. Between October and November 2022, Celsius was unable to pay for the placement of its devices. The debt amounted to over $7.8 million.

“The legal proceedings are stillare ongoing, but this is a big win for Core Scientific. The hosting service provider will likely face more lawsuits from its customers, and the fact that the court allowed the equipment to be turned off during the process will make Core partners less likely to file such lawsuits, said Ethan Vera, chief operating officer of mining firm Luxor Technologies. ).

This is truly a victory for Core Scientific -turning off the equipment will allow the company to save significant money on electricity for miners. In addition, if it succeeds in selling the freed-up hosting capacity, the company will receive about $2 million extra per month. This will help save the business.

At the end of December, the United States experienced a large-scale snow storm, which led to massive outages of mining equipment. Against this background, the Bitcoin network hashrate collapsed by 30%.