Core Scientific cuts deal with lender NYDIG to extinguish $38.6 million in debt

Quick Take

  • Core Scientific agreed to hand over 27,403 machines to NYDIG in order to pay down its outstanding debt of $38.6 million.
  • The company said that it is considering selling certain facilities, which would limit space.

Crypto miner Core Scientific reached a deal with NYDIG amid its ongoing bankruptcy to pay down its $38.6 million loan by handing over roughly 27,403 machines used as collateral.

The company said the deal would be beneficial as those rigs are "no longer necessary" for its "current operations and future business plans" in a motion filed Thursday seeking approval from the U.S. Bankruptcy Court for the Southern District of Texas.

"The principal of the NYDIG Debt exceeds the value the ASICs Collateral," it said. "The ASICs Collateral consists of older models of Miners, which have lower hash rates compared to newer models, such as S19 XP Miners."

The value of most machines went down more than 80% last year.

The company is also "considering opportunities to sell certain of their mining facilities," which would limit rack space.


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Up to 1 gigawatt of facilities could potentially be up for sale, Russell Cann, chief mining officer, told The Block in December.

In a hearing this week, Core Scientific saw its deal for a $70 million loan from B. Riley approved by a judge.

The new deal will provide "up to 15 months of runway and significant flexibility" since it has no "plan-related milestones and is not conditioned on seeking approval of any specific Chapter 11 plan," the motion said.

Representatives of the company said during a bankruptcy court meeting Wednesday that its cashflow has "significantly" improved since filing for bankruptcy in December.

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About Author

Catarina is a reporter for The Block based in New York City. Before joining the team, she covered local news at and at the New York Daily News. She started her career in Lisbon, Portugal, where she worked for publications such as Público and Sábado. She graduated from NYU with a MA in Journalism. Feel free to email any comments or tips to [email protected] or to reach out on Twitter (@catarinalsm).


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