Leading crypto miner Core Scientific would shut down 37,000 mining rigs tied to bankrupt crypto lending platform Celsius Network. In a court filing, the company unveiled its plans and said it would save $2 million every month by turning off the mining equipment, media reports said.
Celsius Network filed for Chapter 11 bankruptcy in July while Core Scientific followed suit in December.
A Celsius attorney told the Texas bankruptcy court that Core Scientific can turn off the machines and stop charging its client. Core Scientific acquired the crypto mining equipment from Celsius in April 2020 under an arrangement where both companies were sharing the costs and profits of the business.
Core Scientific said its decision is based on the current market situation and it wants to focus on its core business.
Core Scientific has been struggling financially since the start of 2020. The company has planned to file for Chapter 11 bankruptcy, which will allow it to reorganize its debts and assets so that it may continue to operate.
Celsius’ crypto mining was first introduced in 2018 and was used for mining digital assets such as Bitcoin and Ethereum. The company was able to gain traction due to its low-cost machines and efficient mining capabilities.
The shutdown of the Celsius crypto mining equipment will have a significant impact on the crypto mining industry. It will reduce the available mining power in the market, which could hurt the price of digital assets.
