Bitmain to Invest $53.9 Million in Core Scientific, Supplying 27,000 Bitcoin Mining Rigs
Bitmain, the preeminent manufacturer of digital currency mining servers worldwide, has just made an astonishing announcement. They intend to inject a colossal sum of $53.9 million into Core Scientific, Inc., a pioneering entity in high-performance blockchain computing data centers and software solutions. This strategic investment represents a profound expansion of the enduring alliance between the two corporations and will pave the way for the procurement of advanced, more efficient bitcoin mining equipment.
Core Scientific, since its inception in 2017, has been a formidable force in elevating industry standards and pushing the boundaries of professionalization. With this bold development, Bitmain is set to fortify its presence in North America and provide essential support for the ever-expanding Bitcoin Network.
Under the purchase agreement’s terms, Bitmain is gearing up to furnish Core Scientific with a whopping 27,000 Bitmain S19J XP 151 TH bitcoin mining servers. This exchange will involve a substantial $23.1 million in cash, coupled with $53.9 million in Core Scientific common stock. However, the precise per-share valuation of the stock will be determined in accordance with a chapter 11 reorganization plan approved by the bankruptcy court. This court blessing is anticipated to come through during the fourth quarter of this year.
The Bitmain S19J XP 151 TH is renowned for its impressive efficiency, boasting an operational prowess of 21.7 Joules per TH/s. Adam Sullivan, the CEO of Core Scientific, couldn’t be more thrilled about the expanded partnership. He underscored the company’s unwavering commitment to elevating industry standards and supporting the sustained growth of the Bitcoin Network.
Core Scientific boasts a stellar track record of deploying Bitmain miners, with over 600,000 units actively serving within their data centers since 2017. At present, a staggering 99% of the 200,000+ miners under Core Scientific’s watch, be it for their own use or hosting customers, are Bitmain S19 models. This collaboration transcends equipment supply, as Bitmain has been a loyal hosting customer of Core Scientific for nearly half a decade.
Energization of these 27,000 newly acquired units is slated for the final quarter of 2023. This influx promises to contribute a colossal 4.1 exahashes to Core Scientific’s self-mining hash rate. Furthermore, Bitmain and Core Scientific have agreed to join forces to retrofit Bitmain’s previous generation miners currently housed at Core Scientific’s data centers with state-of-the-art S19J XP servers, thereby supercharging the company’s overall hash rate.
As of August 31, 2023, Core Scientific had its hands on a staggering 206,000 bitcoin miners, managing both colocation and self-mining. This translated into an impressive total energized hash rate of 22.0 exahashes per second, spread across their data center facilities spanning five U.S. states. Notably, Core Scientific’s self-mining operations yielded a bounty of 965 bitcoin in August alone and an astonishing 9,755 bitcoin year-to-date through August 31. This firmly establishes them as one of the leading bitcoin miners in North America.
Max Hua, the CEO of Bitmain, lauded Core Scientific’s professionalism, integrity, and dedication to the triumph of their hosting customers and the flourishing Bitcoin Network. He underlined Bitmain’s unwavering commitment to the North American digital asset mining industry and emphasized Core Scientific’s pivotal role in fortifying the Bitcoin Network’s stability and vitality.
This monumental investment and equipment supply agreement reverberate as a resounding testament to Bitmain’s enduring commitment to the North American digital asset mining sphere. As the Bitcoin Network continues its meteoric rise in global adoption, the collaborative efforts of Bitmain and Core Scientific are poised to be the driving forces behind innovation and progress within the industry.
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