Core Scientific files motion to sell over $6M in Bitmain coupons

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Along with the motion, the company has been in discussions with Bitmain and two potential third-parties interested in buying the coupons under a significant discount.

As per the filing, some conditions applied to the coupons make them useless for Core Scientific's business. Specifically, the coupons can"only be used to pay 30% of any new order of S19 Miners from Bitmain, and cannot be exchanged with Bitmain for cash."

Moreover, the Bitmain coupons are due to expire between March and April of 2023, when the company anticipates having emerged from its Chapter 11 reorganization. Core Scientific also noted that it will not acquire additional S19 miners while under Chapter 11 or afterward. The sale would result in aggregate nearly $1.0 million to Core Scientific's balance sheets. The company also noted:

 

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The Bitmain coupons are limited to S19 models, which provide a lower hash rate output than recent models. How does this limitation affect the overall mining performance for the company? BitcoinMining CryptoMarket

Core Scientific is seeking to sell Bitmain coupons worth $6.6 million due to expiration and limitations. How does this impact the future of mining for the company? Bitcoin Mining

Core Scientific claims that utilizing their liquidity to purchase new S19 Miners, even with the availability of the Bitmain Coupons, is not the best use of their cash. What other strategies are miners using to stay afloat in the current market? Bitcoin Mining

Looks like Core Scientific is looking to offload $6M in Bitmain coupons due to conditions that make them useless for their business. Wonder what other mining companies are facing similar challenges in the current crypto market? Bitcoin Mining

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