Core Scientific eliminates loan debt

  • 11:04 Feb 06, 2023
Core Scientific eliminates loan debt

An agreement has been reached between the BTC miner and NYDIG that the creditor will not demand repayment of prior debt and interest. In return, the debtor will provide 27,403 mining devices. It can be concluded that NYDIG is acquiring ownership of a significant number of cryptocurrency mining devices.

It is not just a sales transaction it is a huge signal for the entire cryptocurrency industry. It turns out that from the market participant's point of view, BTC mining is an extremely promising direction.

It is important to take into account that in a bankruptcy case, the amount by which the equipment is valued is lower than the loan amount even without interest payments.

There is an obvious interest of the lender in obtaining the mining equipment. Note that the batch of devices consists of far from the newest models of S19 XP, but the transfer of such a large number reduces the costs of transportation and accommodation.

Core Scientific intends to continue working and has already managed to negotiate a large loan of $70 million from B. Riley. The BTC miner is also willing to help with asic installation space acquired by NYDIG.

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