Digital asset miners Core Scientific and Celsius Mining have reached a $45 million deal for the Cedarvale mining site after months of litigation. According to the court filing, both companies agreed to resolve all disputes in an agreement they described as beneficial to the entire mining ecosystem.
According to the agreement; Celsius will pay $14 million in cash. The remainder will be paid through adjusted receivables. The agreement does not include convertible notes held by Celsius against Core. Amid bankruptcy proceedings, Celcius agreed to purchase the Texas mining facility to increase mining capacity for the benefit of its creditors in the long term.
We are committed to adding further value to the Celsius property before it emerges and are keen to lead the development of the Cedarvale assets.
Since both companies are in the midst of bankruptcy proceedings, any agreements reached so far are temporary until approved by the court. Celsius and Core Scientific were engaged in a legal battle for months over contractual obligations, including multiple fee filings for various claims. After Core shut down its mining rigs in January for failure to pay energy bills, Celsius demanded $312 million, among other demands. Core, on the other hand, claims that non-payment of electricity bills invalidates all contracts and that this goes to the basis of the agreement, which was an important factor in the company declaring bankruptcy. According to court files; Core hoped to generate around $2 million in revenue each month from the site, which hosts Celsius mining rigs.
Both companies announced expansion plans amid bankruptcy filings. Core Scientific CEO Adam Sullivan stated that the company was pleased to resolve all litigation with Celsius Mining. Sullivan continued his words as follows:
With unwavering focus, we continue to deliver on our commitment to increase the operational excellence of the organization and emerge even stronger from our restructuring process later this year.
Sullivan also highlighted the company’s three-year growth plan, which includes expanding two Texas data centers to remain the largest Bitcoin miner in North America. Celsius interim CEO Chris Ferraro said the firm hopes to expand the capacity of its Cedarvale facility and expand its portfolio to 300 megawatts. The center currently owns 215 megawatts of power as well as equipment and will facilitate deals with Fahrenheit LLC, which will take over the new company’s capital and management team under Celsius’ bankruptcy agreements.