Bankrupt Mining Company Sells Its Equipment!

Batik cryptocurrency mining company Core Scientific is preparing to sell large volumes of equipment to offset some of its liabilities.

The company, which went bankrupt in the last days of 2022, will sell 18% of its mining devices, according to the agreement that emerged in the bankruptcy court file. The crypto miner will transfer 27,403 devices (worth $38.6 million) to New York Digital Investment Group (NYDIG) against a loan.

According to previous report Core Scientificreceived a $77 million loan from NYDIG to purchase equipment in October 2020. However, the bankrupt company could not meet the debt it had to pay in the last quarter of 2022.

The bankrupt crypto miner has 153,000 machines as of December 2022. The sale agreement has not yet been approved by the court judge.

Core Scientific has another attempt to pay off its debt. The mining company agreed to borrow $70 million from an investment bank to fix its balance sheet.

2022 Has Been A Nightmare For Crypto Miners!

Last year, crypto miners had the hardest days in their history. Although bear markets have been experienced before, rising energy costs have greatly reduced profitability. Added to this, the rise in interest rates, many companies entered a financial crisis.