Bitcoin miner Core Scientific and crypto lender Celsius were in a dispute. They had differing views about a hosting deal. In this context, Celsius had applied for an automatic reprieve in September. But Core had objected, saying the crypto lender wanted to moderate some payments with the bankruptcy proceeding. Eventually, the two crypto companies found a solution. A judge has authorized Core Scientific to shut down all of Celsius’ mining machines with its consent. Now, Celsius is preparing to store its extinguished machines.
Celsius will temporarily store 20,000 mining machines
Earlier this month, the shutdown of over 37,000 miners ended the conflict between Core and Celsius. Now, the crypto lender announces that it will temporarily store 20,000 mining machines. This is a good part of the 37,500 machines that the lender must recover from Core’s hosting center. The Block revealed these different pieces of information in an article published on January 24.
The recovery process for defunct Celsius mining devices is expected to be complete by mid-March. That’s according to Chris Ferraro, who is the lender’s chief restructuring officer and interim CEO. That said, temporary storage of newly recovered devices will be through the lender’s mining arm.
The crypto lending company shows itself optimistic about finding new places for machine accommodation. Regarding this, Ferraro explained:There are hosting options on the market that will allow us to continue mining operations with positive operating cash flow and significant upside“.
The company has seen its liquidity improve with the rise in BTC
According to Ferraro, the recent rally in bitcoin (BTC) has improved Celsius’ liquidity. The CEO also notes a “huge drop» energy costs compared to the peak recorded in the fall.
It appears that crypto lender Celsius is currently making mining 7 to 8 BTC per day. The operation runs at a margin of 25% to 30%, with 27,500 hashing machines.
Ferraro revealed that Celsius will house 6,000 mining machines at a site in Texas. The company will send another 10,000 devices to Pennsylvania, to the site of bitcoin miner Mawson Infrastructure.
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