Mining hardware manufacturer Bitmain has agreed to invest $53.9 million in Core Scientific as part of a contract to supply 27,000 Bitcoin mining devices.
The parties also entered into a new hosting agreement to support Bitmain’s mining business.
According to the agreements, the Chinese manufacturer will supply the American company with 27,000 units of Antminer S19J XP in exchange for $23.1 million in cash and $53.9 million in common shares.
The partners will determine the price of the securities separately after the bankruptcy court approves the Core Scientific restructuring plan. This is expected to happen in the fourth quarter. The company filed for insolvency in December 2022.
Core Scientific noted that since the start of operations in 2017, they have collectively managed more than 600,000 miners produced by Bitmain. Today, the company’s fleet of approximately 200,000 proprietary and client devices consists of 99% models of the S19 line.
Bitmain has been a hosting client of the American company for about five years, entrusting it with the maintenance and operation of a “significant number” of installations, the press release said.
“Bitmain’s product quality, attention to service and responsiveness are critical to our success in supporting the Bitcoin network. The new miners we will receive as part of the agreement will increase the efficiency of our fleet as we continue to prepare for next year’s halving and beyond,” said Core Scientific CEO Adam Sullivan.
Antminer S19J XP provides a hashrate of 151 TH/s with an energy consumption of 21.7 J/TH. In August, the Chinese company announced a new flagship – S21.
As part of the World Digital Mining Summit 2023 event, Bitmain presented this device with stated characteristics of 200 TH/s and 17.5 J/TH.
According to the presentation, the liquid-cooled version is S21 Hyd. — produces 335 TH/s with an energy efficiency of 16 TH/s.
According to the Hashrate Index, market prices for Bitcoin miners with energy costs below 25 J/TH as of September 22 are $19.98 per TH.
Let’s remember that in the middle of the month Canaan introduced the A1466I immersion-cooled miner, providing 170 TH/s with an energy consumption of 19.5 J/TH. The company announced the price of the device at $18.88 per TH.
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