Crypto mining firm Core Scientific has agreed to pay off a $38.6 million debt to the New York Digital Investment Group (NYDIG) by transferring over 27,000 mining machines that were used as collateral.
The company has filed for Chapter 11 bankruptcy and is waiting for approval from the US Bankruptcy Court for the Southern District of Texas.
The transfer of assets will have a short-term negative impact on revenue but is seen as a step toward profitability and sustainability in the future.
Core Scientific plans to shift to a smaller and more efficient fleet of mining rigs, installing the S19 XP rigs to mitigate losses.
The company filed for bankruptcy due to increased electricity costs, an increase in the global Bitcoin hash rate, low Bitcoin prices, and the Celsius bankruptcy.
