Bankrupt bitcoin miner shuts down 37,000 bitcoin mining rigs

Crypto lending platform Celsius filed for bankruptcy in July 2022, taking its subsidiary Celsius Mining with it. It even drew up a plan to use this subsidiary to pay down its debts, and possibly get back on top in the long run.

A few weeks ago you could also read that Core Scientific, the largest public bitcoin miner in the world, had filed for bankruptcy just like Celsius. Both parties are in a so-called ‘chapter 11 bankruptcy’, which means that they can both continue to operate as long as they have the money to do so. In the meantime, they are given time to realize a reorganization.

Bitcoin mining rigs are spawned

Core Scientific had more than 37,000 mining rigs running during the crypto lending platform’s current bankruptcy proceedings. A mining rig is a computer system specifically designed to mine bitcoin (BTC) or other cryptocurrencies.

On October 19, Celsius was charged by Core Scientific for failing to pay his electricity bills. Later, the bitcoin miner cited the failure to pay these bills as a major factor in the liquidity problems that led to the bankruptcy.

On December 28 Core Scientific filed a motion seeking approval to tear up Celsius’s contracts because the company claimed that failure to pay the utility bills constituted a material breach of contract.

From a paper published by Stretto, is to conclude that Core Scientific has received permission to disable all mining rigs that were linked to Celsius Mining. These will also no longer be enabled. The court documents also state that Core Scientific could make $2 million a month if they took over the space Celsius currently occupies.

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Bitcoin mining revenue drops sharply

Yesterday you could read that bitcoin miners are having a hard time in the current bear market. Bitcoin mining revenue is down 37.5% in the past year to $9.55 billion. The low bitcoin price, the ever-rising hash rate and spiraling energy prices are the main factors making it a difficult period for the miners.

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