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.

Read More: Crypto Scam Probe Reveals Cambodia Trafficking

In the context of their history, Core Scientific had previously hosted 37,000 of Celsius Mining’s Bitcoin (BTC) mining rigs. The relationship soured when Celsius, the parent company, filed for bankruptcy in July 2022, leading to Celsius Mining defaulting on fee payments and power bills. Core Scientific ultimately terminated its hosting agreement with Celsius in January 2023, bringing to a close a tumultuous financial relationship between the two entities. Core Scientific’s CEO, Adam Sullivan, expressed his satisfaction with the resolution, emphasizing the company’s commitment to resolving “all existing litigation” with Celsius Mining. He also noted that Core Scientific is on track to emerge from its ongoing restructuring process later this year.