Celsius Acquires Mining Location
Core Scientific has reportedly sold a mining location in Cedarvale, Texas, to the financially troubled crypto lender Celsius for a sum of $14 million. Alongside this transaction, Core Scientific has chosen to relinquish $31 million worth of claims against Celsius, effectively elevating the overall deal to a substantial $45 million, as per a court filing.
Mutual Resolution
The details of this transaction came to light through a court filing made on a Thursday, which also disclosed that Core Scientific and Celsius had reached a mutual resolution to their long-standing disputes. The court filing stated, “After months of negotiations, Celsius and [Core Scientific] have now consensually resolved their long-running disputes and agreed to a global settlement that will fully resolve this litigation.”
Both Core Scientific and Celsius have been grappling with financial challenges, with Core Scientific currently undergoing bankruptcy proceedings. However, it’s worth noting that this settlement is subject to court approval before it can be officially executed. While this deal serves as a financial lifeline for both parties, it also represents a strategic move to restructure and rejuvenate their businesses in an industry characterized by constant evolution.
History and Resolution
The mining site acquired by Celsius is expected to play a pivotal role in the reorganization of Celsius’ mining operations as part of its broader plan. This site, described as a “partially-developed, non-operational” facility, boasts an impressive 215 megawatts of available power. Additionally, Core Scientific is transferring the site’s design plans to Celsius, equipping them to complete the construction process.
