Crypto Mining Firm Core Scientific Settles Legal Battle with Celsius Network, Sells Bitcoin Data Center in $14M Deal
Summary:
Crypto mining firm Core Scientific reaches a settlement with Celsius Network, agreeing to sell a Bitcoin mining data center for $14 million in cash to resolve their legal battle. The Texas-based data center, valued at $45 million, will need court approval for the deal to be finalized. The conflict started in October 2022 when Core Scientific accused Celsius of non-payment, while Celsius claimed the mining firm failed to deploy rigs as per their contract. Both companies filed for bankruptcy protection. The non-operational Texas data center could go to Celsius' mining arm. The litigation is separate from criminal charges against former Celsius CEO and former chief revenue officer.
Core Scientific, a crypto mining firm, has reached an agreement with lending company Celsius Network to resolve their ongoing legal dispute. As per the announcement on September 15, Core Scientific will sell a Bitcoin mining data center to Celsius for $14 million in cash, effectively settling all existing litigation. The data center, valued at approximately $45 million and located in Texas, will require court approval before finalization. The conflict between the two companies initially arose in October 2022, with Core Scientific accusing Celsius of failing to pay its bills and Celsius claiming that the mining firm hadn't deployed rigs as agreed upon in their contract. Both companies separately filed for Chapter 11 bankruptcy protection in the United States, with Core Scientific filing in Texas in December 2022 and Celsius in New York in July 2022. The non-operational Texas data center, which has the capacity to supply 215 megawatts to BTC rigs, is expected to go to Celsius' mining arm if the deal is approved. Celsius CEO Chris Ferrero acknowledged the assistance of crypto mining firm US Bitcoin in structuring and executing the transaction, as well as their involvement in a successful bid for Celsius' assets in bankruptcy proceedings. It's important to note that the ongoing litigation between Core Scientific and Celsius is distinct from the criminal charges faced by former Celsius CEO Mashinsky and former chief revenue officer Roni Cohen-Pavon. Mashinsky, who was arrested in July, has pleaded not guilty to charges related to fraud and market manipulation, while Cohen-Pavon pleaded guilty to four charges on September 13 and is scheduled to be sentenced in December.
Published At
9/15/2023 4:06:20 PM
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