Bitcoin mining rig maker Bitmain plans to invest $54 million in bankrupt Core Scientific
Bitmain announced the investment today, alongside current deals for the Texas-based mining company, which filed for Chapter 11 bankruptcy protection in December. Crypto mining rig maker Bitmain plans to invest $53.9 million in Bitcoin mining company Core Scientific, the company said in a statement.
Mining companies trust each other
The investment from Bitmain comes as the two firms aim to expand their “long-standing relationship” under a supply agreement, the Texas-based Bitcoin mining firm said in a statement. Both firms agreed on a combination of equity capital and cash to finance the purchase of new Bitcoin mining machines.
Under the acquisition agreement, Bitmain plans to provide 27,000 Bitcoin mining servers to Core Scientific, which filed for Chapter 11 bankruptcy protection in December, in exchange for $23.1 million in cash and $53.9 million in Core Scientific common stock, according to the statement.
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