Core Scientific reaches agreement with Celsius on sale, settlement

By Sarah Lizee

Olympia, Wash., Sept. 15 – Core Scientific, Inc. has reached an agreement to sell its Cedarvale Bitcoin mining data center site to Celsius Network LLC unit Celsius Mining LLC and to settle all existing litigation between the two parties for total cash consideration of $14 million, according to a press release issued Friday.

The proposed sale of the partially developed, non-operational Cedarvale data center site includes 215 megawatts of available power, buildings under construction, equipment and designs to enable the completion of the facility.

If approved, the parties would reach a settlement and mutual release with respect to all existing litigation.

“With unwavering focus, we continue to deliver on our commitment to enhance the operational excellence of the organization and emerge from our restructuring process later this year even stronger,” Adam Sullivan, chief executive officer of Core Scientific, said in the release.

“Executing our three-year roadmap to drive growth, we plan to expand our two operational Texas data centers to provide sufficient capacity for us to remain one of the largest and most efficient Bitcoin producers at scale in North America.”

The proposed purchase also sets an early foundation for Celsius to reach a value-maximizing conclusion with Fahrenheit LLC, Celsius’ previously announced plan sponsor.

Fahrenheit will provide the capital, management team, and technology required to successfully establish and operate the new company.

“Securing the Cedarvale site further increases Celsius’ commitment to West Texas, growing our self-mining portfolio to an impressive 300 megawatts,” Chris Ferraro, chief restructuring officer and interim chief executive officer of Celsius Network, said.

U.S. Data Mining Group, Inc., doing business as US Bitcoin Corp., will be contracted to manage the construction of the 215 MW Cedarvale facility.

US Bitcoin was selected as a member firm of the winning bidder in a bankruptcy auction to manage and operate the mining assets owned by Celsius.

In addition to the Cedarvale development project, US Bitcoin has been engaged by Celsius prior to the plan effective date to begin scaling and optimizing the mining business of Celsius.

Core Scientific said the Cedarvale site transaction does not affect its mining fleet and the site is not included in its three-year roadmap, which was filed publicly in June.

The mutually agreed value of the site is $45 million, and the total cash consideration paid by Celsius to Core Scientific is $14 million.

Core Scientific is an Austin, Tex.-based Bitcoin mining company that filed bankruptcy on Dec. 21, 2022 in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 case number 22-90341.

Celsius, a Hoboken, N.J.-based cryptocurrency lending platform, filed bankruptcy on July 13, 2022 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 11 case number 22-10964.

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