Bitmain Will Invest $54M in Core Scientific

Bitmain, a leading manufacturer of crypto mining rigs, has announced its plan to invest $53.9 million in Bitcoin mining firm Core Scientific.

The decision comes as part of the companies’ ongoing relationship and supply contract.

The investment will be a combination of equity and cash and will fund the purchase of new Bitcoin mining machines.

According to the statement, Bitmain has agreed to provide Core Scientific with 27,000 Bitcoin mining servers in exchange for $23.1 million in cash and $53.9 million in Core Scientific common stock.

The stock value per share will be determined by a bankruptcy court as part of the Chapter 11 reorganization plan, which is expected to be approved in the fourth quarter of this year.

In addition to the investment, Bitmain has also entered into a new hosting agreement with Core Scientific.