Last Updated on 2 weeks by Ameer Hamza
According to CryptoPotato, Bitmain, a market leader in producing mining computers for digital currencies, has invested $53.9 million in Core Scientific, Inc., a prominent provider of high-performance blockchain computing data centers and software solutions.
The agreement between Bitmain and Core Scientific, Inc. to buy additional Bitcoin mining equipment and create a new hosting arrangement shows Bitmain’s continued dedication to the North American digital asset mining market.
The CEO of Bitmain, Max Hua, expressed excitement about developing their strategic alliance with Core Scientific, Inc., a dependable American partner. He commended Core Scientific for its expertise, moral character, dedication to the fulfillment of its hosting clients, and support of the expansion of the Bitcoin Network.
Bitmain to Supercharge Core Scientific, Inc.’s Bitcoin Mining with 27,000 S19J XP Servers
Bitmain will give Core Scientific 27,000 Bitmain S19J XP 151 TH bitcoin mining servers in accordance with the conditions of the purchase agreement. In exchange, Core Scientific will give Bitmain $53.9 million in common shares and $23.1 million in cash. The stock’s per-share price will be established in accordance with a Chapter 11 reorganization plan approved by the bankruptcy court. In addition, it is anticipated to be approved in the fourth quarter of 2023. The S19J XP runs at a high-efficiency level of 21.7 Joules per TH/s.
The CEO of Core Scientific, Adam Sullivan, expressed his gratitude for Bitmain’s continued support of their vital relationship. In view of the growing global use of Bitcoin, he stressed their collaborative efforts to professionalize the sector and provide the conditions for the long-term expansion of the Bitcoin Network.
Since its founding, Core Scientific has overseen over 600,000 Bitmain miners spread across its data centers. Currently, Bitmain S19 models account for 99% of the over 200,000 miners in operation, which are owned by Core Scientific and hosted for clients.
Core Scientific expects to receive and activate the 27,000 units from the agreement in the fourth quarter of 2023, which could increase their self-mining hash rate by 4.1 exahashes. The two companies have also committed to collaborate on improving Bitmain’s previous-generation miners located in Core Scientific’s data centers, employing the powerful S19J XP servers to increase the overall hash rate further.
Core Scientific already has a sizable fleet of around 206,000 bitcoin miners in operation as of August 31, 2023, providing both colocation and self-mining applications. This massive operation was producing an outstanding overall energized hash rate of 22.0 exahashes per second. Notably, their self-mining activities earned 965 bitcoin in August alone and a staggering 9,755 BTC year to August 31. This exceptional performance has propelled Core Scientific ahead of any other listed Bitcoin miner in North America.
Takeaways
Bitmain’s investment in Core Scientific is a strategic partnership, and the technology upgrade shows that Bitmain remains committed to the North American mining sector and the long-term growth of the Bitcoin Network.
