- According to the filing, the vouchers are essentially worthless to Core Scientific.
- Core Scientific said that it will not be purchasing any more S19 miners.
As shown by court documents, on January 25th, insolvent Bitcoin mining company Core Scientific filed an emergency petition in an attempt to sell $6.6 million in Bitmain coupons.
According to the filing, the vouchers are essentially worthless to Core Scientific because of the constraints placed on them. These vouchers are only redeemable for the purchase of Bitmain’s S19 Miners in the amount of 30% off the total purchase price, and cannot be redeemed for cash at Bitmain.
Not Interested in S19 Miners Anymore
The coupons are only valid for S19 models. Which produces a lesser hash rate than Bitmain’s most current models, but still, gives a decent return on investment. Even with the availability of the Bitmain Coupons, the Debtors do not consider that leveraging their liquidity to acquire additional S19 Miners is the best use of the Debtors’ resources, the firm said.
When Bitmain emerges from Chapter 11 bankruptcy restructuring, in March or April of 2023, the Bitmain coupons will have expired. Moreover, Core Scientific said that it will not be purchasing any more S19 miners, either in Chapter 11 or later.
In addition to the motion, the corporation has been in talks with Bitmain and two prospective third parties interested in purchasing the vouchers at a steep discount. Bitmain coupons worth $1.9 million were sold for $285,000, while coupons worth $4.8 million were sold for around $713,000. These prices amount to 15% of the face value of the coupons. Moreover, with this deal, Core Scientific would add roughly $1M to its cash reserves.
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