Core Scientific claims that terminating the Celsius contract will allow the firm to earn about $2 million per month.
Core Scientific, one of the largest Bitcoin (BTC) mining firms in the United States, has shut down almost 40,000 mining rigs it hosted for bankrupt crypto lender Celsius Network.
According to Core Scientific’s revised proposed order, Core Scientific is set to power down all Celsius mining rigs starting January 3rd.
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In the order, Core Scientific claims that it will “derack, palletize, and shrink wrap the Celsius rigs and load such pallets on trucks provided by Celsius.” However, the company emphasized that before deracking, the representatives from Celsius and Core Scientific should discuss the whole deracking process.
Nevertheless, Core Scientific claimed that “all Celsius rigs will be picked up within 75 days of January 3,” with Celsius paying for the transportation.
It is worth noting that everything started back in October. On October 19th, Core Scientific claimed that Celsius Network had failed to pay its power bills.
At the end of December, after filing for Chapter 11 bankruptcy protection, Core Scientific filed a motion asking the court’s permission to terminate the contract with Celsius Network. In the filing, Bitcoin (BTC) miners claimed that the termination will allegedly allow the company to earn around $2 million per month.
On top of that, in a December 28th motion, Core Scientific noted that unpaid mining for Celsius Network costs the company around $7.8 million and stated that it cannot “afford to continue shouldering the burden of Celsius’ unpaid power costs.”
In response, Celsius Network filed a preliminary objection claiming that it agrees with Core Scientific’s aim to shut down its mining rigs. However, “Celsius does not believe it is appropriate for the Rejection Motion to proceed at the requested “emergency” hearing on January 3rd.” Instead, Celsius Network offers to discuss the matter during the second hearing scheduled on January 23rd.