Bitcoin miner Core Scientific has shut down 37,000 mining rigs it hosts for Celsius.
Both companies are going through Chapter 11 bankruptcy: Celsius Mining, along with its parent company Celsius Network, filed for bankruptcy on July 13, 2022, and Core on December 21. The two companies are in an ongoing litigation process over their contracts. Core claims Celsius did not pay its dues, while Celsius argues that Core unilaterally increased the power rate not stipulated in the service contract.
Core Scientific Shuts Down Celsius Mining Equipment
Bitcoin miner Core Scientific will shut down 37,000 mining rigs affiliated with its largest client, Celsius Mining.
Core Scientific submitted a revised quotation order on January 3, which includes “revisions acceptable to Celsius” and states that “all Celsius equipment will be shut down from January 3, 2023 and will not be restarted during the transition period.” Core Scientific estimates that canceling the deal with Celsius will generate $2 million a month in revenue as long as Bitcoin stays around 16,700.
Core Scientific accused Celsius of failing to pay its electricity bills on Oct. It also cited non-payment as a major factor in the liquidity problems that led them to file for Chapter 11 bankruptcy on December 21.