One of the largest miners in the US, Core Scientific, has shut down over 37,000 Celsius Network mining devices hosted on its site. This is stated in the new documentsfiled by the miner in bankruptcy court on January 3rd.
Core Scientific is one of the largest in the industry, operating a fleet of 232,000 mining devices. At the end of December, Core filed for Chapter 11 bankruptcy protection. The company will not be liquidated, but will continue to operate as usual, restructuring.
Crypto lender Celsius Network, which had more than 1.7 million customers, reported in early June 2022 that it was facing difficulties due to “extreme market conditions.” The company began restructuring its business, suspended all operations on the platform, and filed for bankruptcy in early July. Celsius’ liabilities exceed its assets by $2.85 billion.
In addition, Celsius was a major client of Core Scientific. The liquidation of Celsius’s debts during the bankruptcy proceedings had a negative impact on the financial position of the miner.
The new court documents state that “all Celsius devices will be turned off as of January 3, 2023 and will not be restarted during the transition period.” Core Scientific has previously accused Celsius of failing to pay electricity bills. In a motion to dismiss contracts with Celsius, the company said it was losing $29,000 a day because of this.
Core also cited these losses as one of the main reasons for the liquidity problems that led it to file for Chapter 11 bankruptcy. currently occupied by Celsius equipment.
Core Scientific is not the only mining company to face financial problems in 2022. At the end of September, the hosting service provider Compute North submitted an application for financial restructuring. And the Argo Blockchain miner only avoided filing for Chapter 11 US bankruptcy by agreeing to sell its massive Texas-based Helios mining facility.
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