Cryptocurrency mining company Core Scientific, which filed for bankruptcy in the past months, has filed an urgent request to put up for sale Bitmain coupons worth $6.6 million. According to the filing, certain conditions applied to coupons prevent Core Scientific from using these coupons. The coupons can only be used to pay 30 percent of any new S19 mining device from Bitmain and are not exchangeable for cash with Bitmain.
The coupons in question can only be used in the S19 model, which has a lower hash rate than Bitmain’s latest mining devices.
The following statements were used by the company:
“Borrowers do not believe that even though Bitmain coupons exist, using their liquidity to purchase new S19 mining devices is a means of making the best use of Borrowers’ cash.”
However, Bitmain coupons that Core Scientific holds will expire in March or April 2023, when the company is estimated to exit the Chapter 11 reissue. In addition, Core Scientific stated in its statement that it will not be purchasing S19 mining devices under or after Chapter 11 additionally. Finally, the company also announced that it is in talks with Bitmain and two potential companies interested in purchasing coupons at a significant discount.