Core Scientific, Celsius settle Texas mining site dispute with $45M deal

This comes as a result of a monthslong bankruptcy battle between Core Scientific and Celsius

September 15, 2023 10:55 am

PHOTOCREO Michal Bednarek/Shutterstock modified by Blockworks

Core Scientific has agreed to sell bankrupt crypto lender Celsius its Cedarvale mining location in Ward County, Texas for a price tag of $14 million, according to a Thursday court filing.

The publicly traded American bitcoin miner, which itself is going through bankruptcy, has also released its $31 million worth of claims against Celsius bringing the total up to $45 million.

“After months of negotiations, Celsius and [Core Scientific] have now consensually resolved their long-running disputes and agreed to a global settlement that will fully resolve this litigation,” the court filing stated.

This agreement needs to be approved by the court before it’s made official.

The mining site that Celsius acquired from Core Scientific will be “a key component of Celsius’ reorganized mining business under its Plan.”

Celsius stands to gain a “partially-developed, non-operational” mining site with 215 megawatts of available power. Additionally, Core Scientific will be handing over the designs to the site so Celsius can complete construction, according to a press release.

Core Scientific used to host 37,000 of Celsius Mining’s bitcoin rigs. And when Celsius, the parent company, descended into bankruptcy in July 2022, Celsius Mining began to default on fee payments and power bills, according to Core Scientific.

It ended its hosting agreement with Celsius in January 2023, and this latest development essentially wraps up the battle between the two.

Core Scientific CEO Adam Sullivan said he was pleased to resolve “all existing litigation” with Celsius Mining, and reiterated that he is planning for his company to emerge from restructuring later this year.

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