Celsius To Retrieve And Store 20,000 Mining Rigs From Bankrupt Core Scientific
Court has approved the bankrupt Celsius network to retrieve its mining rigs from the Core Scientific hosting platform. It would temporarily keep custody of the estimated 20,000 mining rigs while searching for new opportunities.
Celsius To Retrieve Above 20,000 Mining Rigs
According to reports, the mining branch of the collapsed Celsius network has received court approval to retrieve its mining rigs from the Core platform. In addition, the presiding judge had earlier ordered Core Scientific to turn off about 37,500 mining machines belonging to Celsius as the proceeding began.
Recently, Celsius released a mapped-out plan to regain the 37,500 rigs gradually. The temporary CEO and chief constructing officer of Celsius, Chris Ferraro, stated that the retrieval process should be complete by mid-March.
According to him, Celsius can continue its mining operations on many other hosting platforms in the market with good operating cash flows and upside. However, according to reports, Core Scientific recently filed for Chapter 11 bankruptcy.
In addition, Celsius and Core Scientific have conflicted with the conditions surrounding a hosting deal. Based on reports, Celsius motioned in September that the court should order Core to allow it to stay automatically.
However, Core countered that Celsius had been using its bankruptcy predicament to elude payment for some activities. Ruling in favor of Core Scientific, the bankruptcy court approved it to turn off all Celsius mining rigs on its platform.
Recent Market Surge Improved Celsius Liquidity Pool
The current crypto market continues to prove unproductive for miners. It is plagued with a high cost of production and declining value of digital assets, resulting in low margins. These factors have caused many crypto platforms and firms to file for chapter 11 bankruptcy.
Meanwhile, according to Ferraro, the current surge in Bitcoin price has significantly helped improve Celsius’ liquidity. He added that the energy cost has also reduced considerably after several month peaks.
In addition, Ferraro claimed that with the current positive movement in the market price, Celsius hopes to get a suitable platform to host its mining operations again. He said the firm would experience a significant margin increase and improved operating cash flows if the positive market energy is sustained.
At press time, Celsius is mining about 8 BTC daily with a margin of about 30% via 27,500 mining hash. Furthermore, Ferraro revealed that Celsius had removed about 2,150 mining rigs from Core Scientific’s hosting facilities.
It planned to remove another 3,750 rigs this week and about 2,700 rigs by next week. Additionally, Celsius reportedly planned to forward about 10,000 BTC mining rigs to Mawson hosting facilities in Pennsylvania and another 6,000 to an undisclosed mining platform in Texas.
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