A deal has been made between Core Scientific, Inc. (OTC: CORZQ), a well-known provider of blockchain computing data centres and software solutions, and Celsius Mining LLC, a Bitcoin mining division of Celsius Network. Deal included selling “Cedarvale,” a Bitcoin mining data centre located in Ward County, Texas, to Celsius. The two businesses have also agreed to pay a total of $14 million in cash to end any current legal disputes.
The non-operational, currently under construction Cedarvale plant claims a 215 megawatt power capacity. The site also has equipment, plans, and buildings that are still being built but are necessary for the facility to be finished.
The agreement will result in a resolution and mutual release of all pending litigation between the two parties if it is approved.
Core Scientific’s CEO, Adam Sullivan, said, “We are pleased to resolve all existing litigation related to Celsius Mining.” He added that the business was committed to improving operational excellence and that it has ambitions to grow its Texas data centres.
By purchasing the Cedarvale property, Celsius made a strategic move that prepared the way for its partnership with Fahrenheit LLC, the Plan Sponsor it had previously revealed. The acquisition of the Cedarvale property, according to Chris Ferraro, Chief Restructuring Officer and Interim CEO of Celsius Network, “further increases Celsius’ commitment to West Texas,” increasing its self-mining portfolio to 300 megawatts.
The Cedarvale facility’s construction will be supervised by U.S. Data Mining Group, Inc., better known as US Bitcoin Corp (USBTC). Additionally, Celsius has hired USBTC to scale and improve its mining operations. USBTC was picked by Celsius to manage and run its mining assets.
The purchase was praised by Asher Genoot, President and Co-Founder of USBTC, who also emphasised its importance for NewCo’s mining division and the potential value it may add to the Celsius estate. It should be noted that the mining fleet of Core Scientific is unaffected by this purchase. The three-year vision for Core Scientific, which was made public in June 2023, does not include the Cedarvale site, which is valued at $45 million overall.
The largest listed Bitcoin miner in North America as of August 31, 2023, Core Scientific ran about 206,000 Bitcoin miners, making 965 Bitcoin in July and 9,756 Bitcoin overall.
Due to the Chapter 11 restructuring petitions that Core Scientific and Celsius have both made, the proposed arrangement must be approved by the bankruptcy courts in both of those jurisdictions.