Bitmain, a manufacturer of mining equipment, has agreed to invest $53.9 million in Core Scientific under a contract to supply 27,000 Bitcoin mining devices.
The parties also signed a new hosting agreement to support Bitmain’s mining business.
Under the terms, the Chinese manufacturer will supply the American company 27,000 Antminer S19J XP units in exchange for $23.1 million in cash and $53.9 million in common stock.
The value of the securities will be determined separately after court approval of Core Scientific’s restructuring plan. This is expected in the fourth quarter. The company filed for bankruptcy in December 2022.
Core Scientific noted that since it began operations in 2017 it has managed more than 600,000 Bitmain-manufactured miners. Today, the firm’s fleet of roughly 200,000 own and client devices is 99% comprised of S19-series models.
Bitmain has been a hosting client of the American company for about five years, entrusting it with servicing and operation of a “significant number” of installations, according to the press release.
“The quality of Bitmain’s products, attention to service, and responsiveness are critical to our success in supporting the Bitcoin network. The new miners we will receive under the agreement will improve the efficiency of our fleet as we continue preparing for halving next year and further activity,” said Core Scientific CEO Adam Sullivan.
Antminer S19J XP delivers a hash rate of 151 TH/s with a power draw of 21.7 J/TH. In August, the Chinese company announced a new flagship — the S21.
At the World Digital Mining Summit 2023, Bitmain unveiled this device with claimed specifications of 200 TH/s and 17.5 J/TH.
According to the presentation, the liquid-cooled version — S21 Hyd. — delivers 335 TH/s at an efficiency of 16 TH/s.
According to Hashrate Index, market prices for Bitcoin miners with energy efficiency below 25 J/TH as of September 22 stand at $19.98 per TH.
Earlier in the month, Canaan introduced an immersion-cooled miner, the A1466I, delivering 170 TH/s at 19.5 J/TH. The company said the device would be priced at $18.88 per TH.