Bitmain, a globally distinguished cryptocurrency mining hardware manufacturer, recently unveiled its strategic investment initiative, pouring $53.9 million into North America’s blockchain titan, Core Scientific. Known for its advanced blockchain computing data centers and custom software solutions, Core Scientific stands as a testament to excellence in the cryptocurrency sector.
This substantial investment strengthens these cryptocurrency behemoths’ enduring and highly regarded partnership, symbolizing their mutual commitment to driving innovation in blockchain technology.
The collaboration between Bitmain and Core Scientific has been a pivotal part of the industry’s landscape since 2017, with Core Scientific managing over 600,000 Bitmain miners in their cutting-edge data centers. Notably, the prominent Bitmain S19 model series constitute 99% of the 200,000 miners currently under management, signifying Bitmain’s sustained confidence in Core Scientific’s capabilities.
This enhanced collaboration sees Core Scientific acquiring 27,000 of Bitmain’s latest S19J XP 151 TH bitcoin mining servers. However, this agreement is more nuanced than a conventional purchase, involving a $23.1 million direct cash injection and an equity exchange in Core Scientific’s common stock, valued at $53.9 million. The final per-share value of this equity is slated to be finalized post the anticipated approval of the Chapter 11 reorganization plan in the forthcoming fourth quarter.
Bitmain’s CEO, Max Hua, expressed his fervor about the strengthened alliance, applauding Core Scientific’s relentless dedication, professionalism, and integrity in advancing the Bitcoin Network. As Bitcoin adoption is witnessing a significant global uptrend, Hua emphasized the shared vision of both entities to fuel the extensive growth of the Bitcoin Network.
Adam Sullivan, the leader of Core Scientific, acknowledged Bitmain’s crucial contribution to their success, praising Bitmain’s impeccable product quality, customer service, and timeliness as the cornerstone of their achievement. He also highlighted the anticipated efficiency boost from the new miners, especially in light of the upcoming halving event.
Core Scientific plans to integrate these 27,000 units by the end of 2023, potentially adding an impressive 4.1 exahashes to their self-mining hash rate. Additionally, there are mutual accords to upgrade older Bitmain models at Core Scientific’s hubs to the most recent S19J XP versions.
As of August 2023, Core Scientific boasted a substantial energized hash rate of 22.0 exahashes per second, spread over five strategic U.S. locations, mining 965 bitcoins in the month and accumulating 9,755 bitcoins year-to-date, overshadowing other North American publicly listed bitcoin miners.