TechFlow News — According to Bloomberg, Celsius Network LLC has agreed to let Core Scientific Inc. shut down more than 37,000 cryptocurrency mining rigs, resolving a months-long dispute between the two companies.
Core Scientific is a Bitcoin mining company that hosts mining equipment for third parties. It filed for bankruptcy last month, blaming Celsius’ non-payment as a key reason for its collapse. According to Core Scientific’s legal representatives, their hosting agreement allowed them to pass certain power costs on to Celsius, but Celsius has failed to pay these bills since filing for Chapter 11 protection in July.
Court documents show that as of November, Celsius owed Core at least $7.8 million in electricity fees for the mining equipment. Shutting down these miners could save Core thousands of dollars per day, and if the space currently occupied by Celsius can be sold to other clients, it could generate an additional $2 million in monthly revenue. Chris Koenig, a lawyer from Celsius' law firm, said during Tuesday’s bankruptcy hearing: “Beyond today, we don’t intend to make a single penny off Core.” He added that Celsius has agreed to allow Core to power down the hosted mining machines, and both parties are finalizing an agreement to terminate their hosting relationship.Read original article
