Core Scientific wants Celsius to pay its mining bills amid bankruptcy process

Quick Take

  • Bitcoin miner Core Scientific wants “payment of any outstanding amounts owed” by Celsius Mining, amid bankruptcy proceedings.
  • The mining arm of Celsius accused Core Scientific of violating the automatic stay in relation to their hosting agreement.

Core Scientific is prepared to fight Celsius Mining's claims that the hosting provider violated bankruptcy terms and breached their hosting agreement by failing to deploy mining machines on time and unjustly trying to pass on power charges.

The company is "seeking resolution from the bankruptcy court" and "payment of any outstanding amounts owed under the Agreement (...) as soon as practical," it said in a document filed with the U.S. Securities and Exchange Commission on Wednesday.

Celsius owes Core Scientific approximately $5.4 million, the company has claimed in documents filed with the U.S. Bankruptcy Court for the Southern District of New York.

Core Scientific has retained legal advisors and will "vigorously defend its interests" with respect to the case and "current difficult market conditions," it said in the filing.

"Celsius is also using its chapter 11 proceeding to withhold payment of certain charges billed to Celsius pursuant to the Agreement," the firm said. "An adverse or untimely ruling by the bankruptcy court that provides Celsius the benefits of the Company’s hosting services without Celsius fully paying the costs of such services would have a material effect on the Company’s business, financial condition, results of operations and cash flows."

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