Core Scientific receives a $53.9M boost from mining giant Bitmain

Bitmain, a globally acknowledged manufacturer of cryptocurrency mining servers, has disclosed plans to invest $53.9 million in Core Scientific. This North American juggernaut is renowned for its prowess in blockchain computing data centers and tailored software solutions. This recent investment is not just a financial gesture but a clear endorsement of the enduring partnership between these two powerhouses in the cryptocurrency domain.

Core Scientific’s long-standing relationship with Bitmain is no industry secret. Since 2017, Core Scientific has been the go-to for overseeing more than 600,000 Bitmain miners sprawled across their state-of-the-art data centers. Moreover, a remarkable 99% of the 200,000 miners they presently manage, whether owned or hosted, belong to the Bitmain S19 model series. Besides, for almost five years, Bitmain has showcased its unwavering trust in Core Scientific, allotting a significant chunk of its mining hardware under their care.

The collaboration’s specifics involve Bitmain supplying Core Scientific with an astounding 27,000 of its newest Bitmain S19J XP 151 TH bitcoin mining servers. This transaction isn’t merely a straight purchase. Instead, it encompasses a $23.1 million direct cash transfer and an equity exchange. The equity, valued at $53.9 million, will be in Core Scientific’s common stock. Consequently, the final per-share value of this equity is set to be determined after the Chapter 11 plan of reorganization, which many anticipate to get the green light in the imminent fourth quarter.

Max Hua, the proactive CEO of Bitmain, couldn’t hold back his enthusiasm about this fortified collaboration. He lauded Core Scientific for their unwavering “professionalism, integrity, and commitment” towards propelling the Bitcoin Network’s advancement. With global Bitcoin adoption on an impressive upward trajectory, Hua stressed both giants’ aligned vision, aiming to supercharge the Bitcoin Network’s expansive growth.

Adam Sullivan, at the helm of Core Scientific, recognized the indispensable role Bitmain plays in their journey. He remarked, “Bitmain’s product quality, dedication to service, and promptness are pillars of our triumph.” Additionally, he underscored the imminent efficiency surge the fresh batch of miners promises, especially considering the approaching halving event.

By the twilight of 2023, Core Scientific has ambitions to incorporate these 27,000 units, which could infuse an added 4.1 exahashes to their self-mining hash rate. Mutual agreements are also in place to rejuvenate older Bitmain models housed at Core Scientific’s centers, transitioning them to the latest S19J XP avatars.

As August 2023 drew to a close, Core Scientific flexed its robust energized hash rate of 22.0. exahashes per second, disseminated across their facilities in five strategic U.S. locations. Their mining exploits for the month stood at an impressive 965 bitcoins, amassing 9,755 bitcoins for the year, leaving other publicly listed bitcoin miners in North America in their wake.