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Breaking News: Celsius and Core Scientific Unveil a Monumental $45 Million Settlement Proposal to Revolutionize the Litigation Landscape!
Exciting Update: Subject to Court Approval, Celsius and Core Scientific Strike a Landmark Deal! In an unprecedented settlement, Celsius is set to acquire a high-value $45-million mining data center from Core Scientific at an astonishing price of just $14 million. This game-changing agreement not only demonstrates savvy business acumen but also highlights a new era of strategic partnerships in the tech world. Stay tuned as this groundbreaking deal awaits the final nod from the court, potentially setting a new precedent in the industry!
Significant Development: Core Scientific, a leading crypto mining firm, has reached a notable agreement with Celsius Network, a prominent lending company, to resolve their prolonged legal dispute. Announced on Sept. 15, Core Scientific will sell a Bitcoin mining data center valued at approximately $45 million to Celsius for $14 million in cash. This strategic move aims to settle all existing litigation between the two. The Texas-based data center’s deal, pivotal in the crypto industry, is now pending court approval for finalization.
The dispute between Core Scientific and Celsius Network originated in October 2022. Core Scientific accused Celsius of not paying its bills, while Celsius countered, alleging that Core Scientific hadn’t deployed mining rigs as stipulated in their contract. This disagreement escalated, leading both companies to file for Chapter 11 bankruptcy protection in the United States: Core Scientific in Texas in December 2022, and Celsius in New York in July 2022.
The Texas data center, poised to be acquired by Celsius’ mining division upon approval, is currently nonoperational but has the capacity to supply 215 megawatts to BTC mining rigs. Celsius CEO Chris Ferrero highlighted that US Bitcoin, a crypto mining firm, played a crucial role in structuring and executing this transaction. US Bitcoin was also a participant in the successful bid for Celsius’ assets during the bankruptcy proceedings.
The legal battle between Core Scientific and Celsius Network is distinct from the criminal charges faced by former Celsius CEO Alex Mashinsky and former chief revenue officer Roni Cohen-Pavon. Mashinsky, who was arrested in July, has pleaded not guilty to allegations of fraud and market manipulation. On the other hand, Cohen-Pavon pleaded guilty to four charges on September 13 and is scheduled for sentencing in December.
