Core Scientific is currently under investigation and things seem to be going badly. This Thursday, February 2, the mining company actually decided to transfer some of its crypto mining machines to NYDIG to pay off its $38.6 million debt. The company said that these machines are not of major importance to its current and future operations. However, this statement is difficult to accept and actually seems to be a cop-out to downplay the importance of these machines and their impact on the company.
Core Scientific transfers approximately 18% of its mining machines to NYDIG
Core Scientific has decided to pledge some of its mining equipment to NYDIG to offset a $38.6 million debt. The announcement was confirmed in a document filed in South Texas bankruptcy court on Thursday, February 2.
Core Scientific said the machines are no longer useful for its current operations, let alone its future projects. The value of the ASIC miners has reportedly dropped significantly, and Core Scientific may purchase machines of the same quality for $25 million, a sum less than it owed to New York Digital Investment Group (NYDIG).
The mining giant also mentioned that these machines were older models with a reduced hash rate. The company admits, however, that this decision could have an immediate negative impact on its profit. However, it reassures that this damage could decrease by using some Bitcoin mining specific machines currently in stock.
By the end of 2022, Core Scientific was operating 153,000 machines. This deal is beneficial for the company, which reduces a significant portion of its debt to NYDIG, which had loaned Core Scientific more than $77 million in 2020.
Core Scientific is currently under fire for suspected fraud! The investigation has been ongoing for a month. This, coupled with the financial problems that the company is facing, does not really inspire confidence on the company’s statement…
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.