Core Scientific seeks summary judgment relating to Celsius claim

By Sarah Lizee

Olympia, Wash., May 31 – Core Scientific Operating Co., formerly known as Core Scientific, Inc., is seeking summary judgment relating to Celsius Mining, LLC’s (Celsius Network LLC) proofs of claim, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

Celsius has filed proofs of claim against Core seeking over $312 million in alleged damages related to hosting agreements between the parties.

This is the largest single claim submitted against Core and is disputed by the debtors.

“Given the asserted amount, resolution of the Celsius claim as quickly as possible will aid in the administration of the debtors’ estate and will benefit all stakeholders,” Core said in the motion.

Core said resolving the purely legal issues relating to the applicability of the contractual limitations of liability provisions will materially impact the size of the Celsius claim and set outer parameters of the debtors’ potential liability, if any, to Celsius.

“Indeed, in asserting its claim for over $312 million, Celsius itself indicated that the claim amounts were based on the ‘assum[ption] that any limitations of liability in the contracts do not apply,’” Core said.

“Thus, Celsius acknowledges the significance of these provisions and their impact on the Celsius claim.”

Core said a ruling that the limitations of liability provisions contained in the underlying contract apply, as a matter of law, will materially advance resolution of the Celsius claim.

Core Scientific is an Austin, Tex.-based Bitcoin mining company. The company filed bankruptcy on Dec. 21, 2022 under Chapter 11 case number 22-90341.

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