Core Scientific to Hand Over $20.8M Worth of Hardware to Priority Power
- A bankruptcy court Judge David Jones ruled on the $20.8M transfer of equipment.
- The company owed roughly $30 million for the services as per Priority Power.
Priority Power, a company that specializes in energy infrastructure, was given an order by the United States Bankruptcy Court for the Southern District of Texas to acquire around $20.8 million worth of mining equipment from Core Scientific. Two Texas mining facilities that were expected to generate 1,000 megawatts of power for Core Scientific. Became a source of contention between the companies.
A bankruptcy court Judge David Jones ruled that Core Scientific and Priority Power Management (PPM) should resolve their dispute. This is to be done by transferring electrical equipment worth over $20 million. Before Core Scientific filed for bankruptcy. The energy negotiator PPM had claimed that the company owed it roughly $30 million for the services it had supplied.
2022 Crypto Winter Effect
Priority Power is the “exclusive energy manager and consultant” for the crypto miner as of the summer of 2021. The company was ostensibly obligated to construct two mining facilities in Western Texas in addition to handling power contracts.
Core Scientific’s Michael Bros said that it became clear that the locations would be left without the required energy load. Thus, the business stopped making payments to Priority Power.
After suffering losses due to the crypto winter and the falling values of cryptocurrencies, mainly bitcoin, the miner discontinued making payments on its other debts around the end of 2022. It filed for Chapter 11 bankruptcy protection just before Christmas after selling off most of its Bitcoin assets over the preceding several months.
After declaring bankruptcy, Core Scientific said it will keep mining bitcoin to pay its creditors. In December, it mined 1,435 Bitcoin and increased its hashrate from 15.4 to 15.7 EH/s.
