Bitmain, a well-known crypto mining rig manufacturer, has unveiled its plan to invest a substantial $53.9 million in Core Scientific, a prominent Texas-based bitcoin mining firm that filed for Bankruptcy protection in December.
Terms of the Agreement
Bitman stated in a recent release that this new investment, comprising a combination of equity and cash, is primarily intended to finance the acquisition of advanced and more efficient bitcoin mining equipment.
Specifically, Bitmain will supply Core Scientific, with an impressive 27,000 Bitmain S19J XP 151 TH bitcoin mining servers in exchange for $23.1 million in cash and $53.9 million in Core Scientific common stock.
The 27,000 units are expected to be received and energized in the fourth quarter of 2023, potentially adding 4.1 exahashes to Core Scientific’s self-mining hash rate.
Additionally, the two industry leaders have agreed to collaborate on upgrading Bitmain’s previous-generation miners hosted at Core Scientific’s data centers with S19J XP servers, further increasing the company’s total hash rate.
Bitmain’s Relationship with Core Scientific
This strategic move comes as both companies seek to bolster their “long-standing relationship” and further solidify their presence in the booming Bitcoin mining industry.
Adam Sullivan, CEO of Core Scientific, expressed his gratitude for the expansion of their significant relationship with Bitmain. Together, they have played a vital role in professionalizing the crypto mining industry and charting a path for the sustained growth of the Bitcoin Network as the adoption of Bitcoin increases globally.
Significance of the Deal to North America
This investment not only enhances Core Scientific’s ability to operate and expand its mining facilities but also strengthens Bitmain’s foothold in the North American market. As the global blockchain industry continues to evolve, partnerships like this one will play a crucial role in driving innovation and ensuring the robustness of the digital asset infrastructure.
As of August 31, 2023, Core Scientific operated approximately 206,000 bitcoin miners for both colocation and self-mining. This represents a total energized hash rate of 22.0 exahashes per second across their data center facilities in five U.S. states.
Core Scientific’s self-mining operations produced 965 Bitcoin in August, making it the leading listed Bitcoin miner in North America, with a year-to-date production of 9,755 Bitcoin through August 31. These impressive statistics underscore Core Scientific’s pivotal role in the North American digital asset mining landscape.