{"id":9558,"date":"2023-01-04T03:14:40","date_gmt":"2023-01-04T03:14:40","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=9558"},"modified":"2023-01-04T03:14:41","modified_gmt":"2023-01-04T03:14:41","slug":"core-scientific-shuts-down-37k-mining-rigs-it-was-hosting-for-celsius","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=9558","title":{"rendered":"Core Scientific shuts down 37K mining rigs it was hosting for Celsius"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bankrupt cryptocurrency lender Celsius Network has agreed to let Bitcoin (BTC) miner Core Scientific shut off more than 37,000 mining rigs it had been hosting for Celsius during the miner\u2019s bankruptcy proceedings.<\/p>\n<p>Core Scientific filed a revised proposed order on Jan. 3 that incorporated \u201crevisions acceptable to Celsius\u201d stating \u201call Celsius rigs will be powered down effective January 3, 2023 and will not be restarted during the transition period.\u201d<\/p>\n<p>On Oct. 19, Core Scientific accused Celsius of failing to pay its power bills,\u00a0later citing the non-payment as a major factor in the liquidity issues that led to the Bitcoin miner filing for Chapter 11 bankruptcy on Dec. 21.<\/p>\n<p>On Dec. 28, Core Scientific filed a motion seeking approval to reject Celsius\u2019 contracts, claiming the firm\u2019s failure to pay its power bills constituted a material breach of contract.<\/p>\n<p>According to the court filings, the termination of the agreement would apparently allow Core Scientific to generate a revenue of $2 million per month from the space currently occupied by Celsius\u2019 mining rigs.<\/p>\n<p>The hosting deal\u2019s terms allowed Core Scientific to pass on some of the power costs to Celsius, and those costs have considerably increased since Russia\u2019s invasion of Ukraine.<\/p>\n<p>According to the rejection motion, covering the increased power fees cost Core Scientific almost $7.8 million as of Dec. 28 and the miner noted it \u201ccannot afford to continue shouldering the burden of Celsius\u2019 unpaid power costs.\u201d<\/p>\n<p><strong>Related: <\/strong><strong><em>Bitcoin miners see mixed successes in tackling debt-fueled overexpansion crisis<\/em><\/strong><\/p>\n<p>The cost of production has increased for miners while the price of Bitcoin has decreased, which has eaten into miners\u2019 bottom line and contributed to the \u201chash price\u201d \u2014 the revenue Bitcoin miners can earn per unit of hash rate \u2014 falling over 75% over 2022.<\/p>\n<p><em>Bitcoin Hashprice Index. Source: Luxor Technologies<\/em><\/p>\n<p>Miner\u2019s lack of profitability combined with the costs associated with expansion efforts caused many Bitcoin miners to struggle toward the end of 2022 and share prices plummeted as a result.<\/p>\n<p>Core Scientific has seen their share price fall by 99.15% over the course of the year, while Iris Energy and Riot Blockchain saw falls of 91.79% and 85.09%, respectively.<\/p>\n<p><em>Bitcoin miners\u2019 stock performance. Source: Luxor Technologies<\/em><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/core-scientific-shuts-down-37k-mining-rigs-it-was-hosting-for-celsius\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bankrupt cryptocurrency lender Celsius Network has agreed to let Bitcoin (BTC) miner Core Scientific shut off more than 37,000 mining rigs it had been hosting for Celsius during the miner\u2019s bankruptcy proceedings. Core Scientific filed a revised proposed order on Jan. 3 that incorporated \u201crevisions acceptable to Celsius\u201d stating \u201call Celsius rigs will be powered [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9559,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-9558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9558"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9558\/revisions"}],"predecessor-version":[{"id":9560,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9558\/revisions\/9560"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/9559"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}