Bitmain Invests $53.9M In Core Sci

Core Scientific has announced a substantial $53.9 million investment from Bitmain, a global leader in digital currency mining server manufacturing. This investment further solidifies the longstanding partnership between the two companies and underscores Bitmain’s unwavering commitment to the North American digital asset mining sector.

Bitcoin Mining Collaboration

This financial arrangement entails a combination of equity and cash, earmarked for the acquisition of advanced and more efficient bitcoin mining equipment. Simultaneously, Bitmain has inked a fresh hosting agreement with Core Scientific to bolster its mining operations within the region. Max Hua, Bitmain’s CEO, expressed his enthusiasm for the strengthened strategic relationship with Core Scientific, lauding the company’s professionalism, integrity, and dedication to the success of their hosting customers and the ongoing growth of the Bitcoin Network.

As per the purchase agreement, Bitmain is set to supply Core Scientific with 27,000 Bitmain S19J XP 151 TH bitcoin mining servers. The transaction comprises $23.1 million in cash and $53.9 million in Core Scientific common stock. The stock’s per-share valuation will be determined in accordance with a bankruptcy court-approved chapter 11 reorganization plan, with the anticipated approval slated for the fourth quarter of 2023. Notably, the S19J XP boasts an impressive efficiency level of 21.7 Joules per TH/s. Adam Sullivan, CEO of Core Scientific, expressed his deep appreciation for the expanded partnership with Bitmain. He emphasized the joint efforts of both companies to elevate industry standards and pave the way for the sustained growth of the Bitcoin Network amidst the rising global adoption of bitcoin.

Core Scientific boasts a substantial history of collaboration with Bitmain, having effectively operated over 600,000 Bitmain miners across its data centers since its inception in 2017. In the present day, a striking 99% of the more than 200,000 miners that Core Scientific manages, both on behalf of the company and its hosting customers, belong to the Bitmain S19 model family. Moreover, Bitmain has entrusted Core Scientific with the operation and maintenance of a significant portion of its mining equipment for nearly five years.

Read More: Busan’s $75M Blockchain CitySullivan underscored the pivotal role of Bitmain’s product quality and its unwavering responsiveness, both of which are instrumental to Core Scientific’s success in supporting the Bitcoin Network. The acquisition of these new miners through this agreement will significantly enhance the efficiency of Core Scientific’s mining fleet as they prepare for the forthcoming halving event and future milestones. The 27,000 mining units are slated to be received and activated in the fourth quarter of 2023, with the potential to contribute 4.1 exahashes to Core Scientific’s self-mining hash rate. Additionally, both companies have committed to upgrading Bitmain’s previous-generation miners hosted at Core Scientific’s data centers with the advanced S19J XP servers, further boosting the combined hash rate.