The crypto winter of 2022 forced many crypto-related establishments into financial stress leading to bankruptcy proceedings. Core Scientific was one of the firms affected by the 2022 market crash as it filed for Chapter 11 bankruptcy due to falling revenue and low BTC prices.
The firm couldn’t withstand the heat of its failing revenue and increasing costs of operations, plus its case with the now-defunct Celsius Network.
In a new development, Core Scientific has agreed to settle and will transfer around $20 million of equipment to Priority Power Management, its energy negotiator.
Core Scientific Vs. Priority Power
Core Scientific was locked in a dispute with Priority Power Management over financial issues. David Jones, a Judge with the United States Bankruptcy Court in Sothern Texas, ruled on the case and Core Scientific has now agreed to settle by transferring $20.8 million worth of mining equipment to Priority Power.
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Core Scientific’s two Texas-based facilities requiring a 1,000 Megawatts upgrade were central to this dispute. A Core Scientific executive, Michael Bros, stated that the company partnered with Priority Power in June 2021. This partnership hoped to develop and manage the infrastructure to fulfill its energy needs on short notice.
However, Bros stated that it became clear that the facilities will not receive the predicted power load by May 2022. Core scientific halted all payments to Priority Power, which claimed to have suffered significant losses.
In response, Priority Power claims that Core Scientific owes them $30 million for previous work before their December
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Author: Savannah Fortis
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