The world’s top supplier of servers for crypto mining, Bitmain, has agreed to invest $77 million in Core Scientific, Inc., a pioneer in high-performance blockchain computing data centers and software solutions, according to a September 22 announcement at the World Digital Mining Summit.
The bitcoin miner from Texas stated in a statement that the Bitmain investment comes as the two businesses look to deepen their “longstanding relationship” as part of a supply agreement.
According to the statement, Bitmain intends to deliver 27,000 Bitcoin mining servers (Bitmain S19J XP 151 TH) to Core Scientific, which applied for Chapter 11 bankruptcy protection in December, under the terms of the purchase agreement, in exchange for $23.1 million in cash and $53.9 million in Core Scientific common stock.
According to the Chapter 11 reorganization plan, which is anticipated to be approved in the fourth quarter of this year, a bankruptcy court will determine the company’s stock value per share.
Max Hua, CEO of Bitmain, stated, “We look forward to deepening our strategic relationship with Core Scientific, our long-standing U.S.-based partner. Their professionalism, integrity, and commitment to the success of their hosting customers and to the growth of the Bitcoin Network is unsurpassed in the industry.”
Adam Sullivan, the CEO of Core Scientific, stated that the group has put in a lot of effort to professionalize their sector and pave the way for the long-term expansion of the Bitcoin Network as its use grows across the globe.