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Core Scientific Signs Contracts to Host 18,000 Bitcoin Mining Rigs Amid Bankruptcy

Core Scientific (CORZQ) has secured contracts to host almost 18,000 Bitcoin (BTC) mining rigs with three firms while navigating its way through Chapter 11 bankruptcy, as stated in a Friday press release. These contracts signal a potential improvement in the company's prospects, considering it initiated bankruptcy proceedings in December 2022. A group of the firm's equity holders noted in March that Core Scientific's financial position had significantly improved due to changing market conditions.

The mining company will host 6,914 mining rigs for Greenidge Generation Holdings (GREE), 10,000 units for Ault Alliance (AULT), and 1,021 for LM Funding (LMFA). Once fully installed in May, these rigs will bring the total number of machines hosted by Core Scientific to approximately 70,000, in addition to the 155,000 machines it uses for its mining operations as of the end of March. The contracts involve a mix of variable pricing and proceeds-sharing agreements.

The 18,000 machines will be hosted at Core Scientific's facilities in Dalton, Georgia; Calvert City, Kentucky; and Denton, Texas. These sites previously hosted rigs for Celsius Mining, which is also involved in bankruptcy proceedings. Following its Chapter 11 filing, Core Scientific shut down 37,000 rigs belonging to Celsius Network's mining arm due to disputes over their services agreement.

Core Scientific's equity, traded over-the-counter, has increased 887% since the beginning of the year, according to TradingView data, with shares now valued at 40 cents. The miner has 175 megawatts (MW) of available hosting capacity at its Denton, Texas facility and is currently developing another 915 MW in West Texas and Oklahoma.

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