Bitmain’s investment represents not only a significant financial commitment but also a strategic move to fortify its partnership with Core Scientific.
Bitmain, a leading manufacturer of crypto mining rigs, has announced a substantial investment of $53.9 million in Core Scientific, a major North American blockchain data center provider and digital asset miner since 2017. Core Scientific operates data centers in multiple US states and utilizes their Minder software for efficient mining management and monitoring.
This partnership signifies an expansion of their already-established relationship and supply contract. Both companies have agreed to a unique financing arrangement, blending equity and cash to acquire new Bitcoin mining equipment.
Bitmain is set to provide Core Scientific with 27,000 Bitmain S19J XP 151 TH bitcoin mining servers. In return, they will receive $23.1 million in cash and $53.9 million in Core Scientific common stock. The stock’s per-share value will be determined according to a Chapter 11 plan of reorganization approved by a bankruptcy court, with expected approval in the fourth quarter of this year. Notably, the S19J XP boasts an impressive efficiency level of 21.7 joules per TH/s.
A Solidified Future: The Impact of Bitmain’s Investment on the Crypto Mining Industry
Bitmain’s investment represents not only a significant financial commitment but also a strategic move to fortify its partnership with Core Scientific. Additionally, Bitmain has signed a new hosting agreement with Core Scientific, underscoring the importance of this collaboration in the Bitcoin mining ecosystem.
Max Hua, the CEO of Bitmain, praised Core Scientific for their professionalism, integrity, and unwavering commitment to the success of their hosting customers and the growth of the Bitcoin Network, stating:
“Their professionalism, integrity, and commitment to the success of their hosting customers and to the growth of the Bitcoin Network are unsurpassed in the industry.”
In response, Core Scientific’s CEO, Adam Sullivan, expressed their honor in expanding their significant relationship with Bitmain, saying:
“Together, we have worked tirelessly to professionalize our industry, charting a path for the long-term growth of the Bitcoin Network as bitcoin adoption increases around the world.”
This investment solidifies the synergy between the two companies and positions them for a more substantial role in the crypto mining industry.
Core Scientific Strategic Growth Plan
Core Scientific has ambitious plans for these new mining units, aiming to integrate and activate the 27,000 units by the end of the fourth quarter of this year. This move is expected to significantly enhance Core Scientific’s self-mining hash rate, potentially adding 4.1 exahashes to their capabilities.
Core Scientific was already operating around 206,000 bitcoin mining rigs across its facilities in the United States, and these rigs collectively boasted a hash rate of 22 exahashes per second, highlighting the company’s substantial presence in the mining sector. Notably, it reported impressive Bitcoin production figures, having mined 965 bitcoins in August alone and a cumulative total of 9,755 bitcoins during the first eight months of the year. These numbers position Core Scientific as a leader among publicly listed Bitcoin miners in North America.
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Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor’s and master’s degrees in linguistics. When not writing, he trades forex and plays video games.