Core Scientific has filed a motion to sell $6.6 million in Bitmain coupons

The now-bankrupt Bitcoin mining company ‘Core Scientific’ reportedly filed for bankruptcy earlier this month an emergency motion in which they wanted to sell Bitmain coupons worth $6.6.

Coupon terms unusable for Core Scientific

According to the mining company, some of the conditions that applied to the coupons made them unusable for the company’s operations.

The coupons can reportedly only be used to pay for 30% of each new order from Bitmain’s S19 Miners. They simply cannot be exchanged for cash at Bitmain.

Also, the coupons would be limited to only S19 models and not the S19 Pro models. These have a lower hash rate than the pro models, which also makes them (slightly) less attractive. The company claimed the following:

The debtors do not believe that using their liquidity to buy new S19 miners, even with the availability of the Bitmain coupons, is the best use of the debtors’ money.

It is worth mentioning that Bitmain coupons have an expiration date, most of which will still expire between March and April of this year. If a buyer is found for it, it must therefore happen relatively quickly.

Talking to potential buyers

Still, the company would already be in talks with potential buyers, who may want to take over the coupons at a discount. The talks would already be at an advanced stage, so some details have already been released. For example, potential buyers would want to buy the coupons for about 15% of face value, which equates to just under $1 million for all coupons. The mining company noted the following:

While the total purchase price of approximately $1.0 million would represent a significant discount to the approximately $6.6 million face value of the Bitmain Coupons, it would also represent a significant value above what those Bitmain Coupons are worth to the debtors and their legacies: 0.

The crypto winter has also had an effect on the sale of S19 Crypto miners. Many companies that wanted to get rid of their miners have had to do so at a significant discount. This was never really the case before, because they were sold anyway. However, this part of the market is expected to pick up quickly once the crypto winter ends. However, it is not known exactly when this is.

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