Core Scientific's Stock Hike 7% Following New Hosting Contracts Amid Bankruptcy

  • Crypto miner Core Scientific has signed a new hosting contract amid its bankruptcy proceedings. 
  • The struggling miner has agreed to host nearly 18,000 BTC mining rigs from three firms.
  • The new contracts will bring the mining firm’s total mining rigs to over 220,000. 

The latest development in Core Scientific’s bankruptcy case saw the struggling crypto miner sign a series of new hosting contracts to host thousands of bitcoin (BTC) mining rigs. The Texas-based crypto mining firm has negotiated three new hosting contracts to host nearly 18,000 BTC mining rigs.

Core Scientific Stock Surges 7% Following News Contract Signings

According to a press release by Core Scientific, the Bitcoin mining firm has signed new hosting contracts with three companies. It will host 6914 mining rigs for Greenidge Generation Holdings, 10,000 mining rigs for Ault Alliance, and 1021 mining rigs for LM Funding. The firm will host the mining units at its facilities in Georgia, Kentucky, and Texas. The new hosting contracts demonstrate its status quo as a leader in the Bitcoin mining industry despite being in the midst of Chapter 11 proceedings. 

The signing of these agreements are illustrative of Core Scientific’s industry leading hosting and mining capabilities and the strong demand for our services within our world class mining facilities.”

The combined computing power of 17,935 units amounts to 1.88 exahashes per second and requires approximately 55 megawatts of data center rack space. As of now, 900 LM Funding units and 3,000 Ault Alliance units are already in operation and are actively hashing. An additional 121 LM Funding rigs will become operational by the end of April. By May, 7,000 Ault Alliance units and 6,914 Greenidge rigs will go online and begin hashing.

The new hosting contracts have had a considerable impact on Core Scientific’s share price (CORZQ). Its stock surged by nearly 7% following the news, reaching as high as $0.41 earlier today. The bankrupt mining firm’s stock was trading at $0.38 at the time of writing. Earlier this month the firm’s bankruptcy estate appointed investment banker Adam Sullivan as the firm’s new president. 

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