Leading cryptocurrency mining device manufacturer Bitmain has announced plans to invest $53.9 million in Bitcoin (BTC) miner Core Scientific. Core Scientific, a Texas-based Bitcoin miner, made headlines in December 2022 when it filed for Chapter 11 bankruptcy protection.
In a statement from Core Scientific, the Texas-based Bitcoin miner, it was mentioned that the investment from Bitmain will be used to expand the long-standing relationship between the two companies as part of a supply contract. Both companies have made an equity and cash-focused agreement to finance the purchase of new Bitcoin mining devices.
According to the announcement, as part of the purchase agreement, Bitmain will supply Core Scientific with 27,000 Bitcoin mining devices in exchange for $23.1 million in cash and $53.9 million in Core Scientific common stock, following Core Scientific’s Chapter 11 bankruptcy filing in December 2022.
In a statement regarding the agreement, Core Scientific stated that the company’s share price will be determined by the restructuring plan under Chapter 11, which is expected to be approved by the bankruptcy court in the fourth quarter of this year. Furthermore, the company announced that it has signed a new hosting agreement with Bitmain.
Bitmain CEO Max Hua stated, “Core Scientific’s professionalism, integrity, and commitment to the success of its hosting customers and the growth of the Bitcoin network are unparalleled in the industry.”
Core Scientific plans to take delivery of the 27,000 new Bitcoin mining devices in the fourth quarter of this year and expects this to potentially add 4.1 exahash to its self-mining hash rate.
As of the end of August, Core Scientific operates approximately 206,000 Bitcoin mining devices for both hosting and self-mining, resulting in a total hash rate of 22 exahash per second at its US facilities. The Bitcoin miner generated 965 BTC from self-mining in August and 9,755 BTC in the first eight months of this year, surpassing all other Bitcoin miners in North America.