Core Scientific to disable 37 Celsius ASIC miners

Bankrupt data center operator Core Scientific is in the process of disconnecting 37 mining units from crypto lender Celsius due to non-payment.

Core Scientific remains one of the largest mining companies in the US, hosting third party devices. At the same time, despite positive cash flow, the company went bankrupt. One of the main reasons for this decision was delays in payments from Celsius. Between October and November 2022, Celsius did not pay for the deployment of its units. The debt amounted to more than 7,8 million dollars.

“Litigation is still ongoing, but this is a major victory for Core Scientific. The hosting provider is likely to face more lawsuits from its customers, and the fact that the court allowed equipment to be turned off during the process will reduce the likelihood of such lawsuits by major partners, says Ethan Vera, COO of mining company Luxor Technologies).

For Core Scientific, this is indeed a victory - turning off the equipment will allow the company to save significant amounts of electricity for the miners. In addition, if it manages to sell the released hosting capacity, the company will receive an additional $2 million per month. This will help keep the business going.

At the end of December, a large-scale snowstorm occurred in the United States, which led to massive shutdowns of mining equipment. Against this backdrop, the hashrate of the Bitcoin network collapsed by 30%.