Celsius and Core Scientific Settle Dispute to a $45 Million Deal

Celsius and Core Scientific's long-standing dispute culminates in $45 million settlement, including transfer of Cedarvale mining site and designs.

Sep 16, 2023 - 17:02
Sep 17, 2023 - 17:14
 16
Celsius and Core Scientific Settle Dispute to a $45 Million Deal
Reading time - 1 min

The disagreement between Celsius and Core Scientific wasn't a sudden flare-up. It had been simmering for several months, rooted in their business dealings. Core Scientific, a renowned American Bitcoin miner, had been hosting a substantial number of Bitcoin rigs for Celsius Mining. However, the dynamics changed when Celsius faced financial challenges, leading to bankruptcy in July 2022. 

As a result, Celsius began defaulting on various payments, including fee payments and power bills. This financial strain strained their relationship, culminating in Core Scientific terminating its hosting agreement with Celsius in January 2023. This decision further escalated the tensions, leading to a series of legal battles.

The protracted legal tussle between the two companies finally saw a resolution with a $45 million settlement. As part of this agreement, Core Scientific consented to sell its Cedarvale mining location in Texas to Celsius for a sum of $14 million. This mining site, situated in Ward County, Texas, is characterized as a "partially-developed, non-operational" location but boasts an impressive 215 megawatts of available power. 

In addition to the site itself, Core Scientific also agreed to transfer the site's designs, facilitating Celsius in its construction endeavors. Furthermore, Core Scientific relinquished its claims against Celsius, valued at $31 million, bringing the total worth of the settlement to the aforementioned $45 million.

The legal disputes involving the two companies are distinct from the criminal allegations directed at Celsius's ex-CEO, Alex Mashinsky, and its previous chief revenue officer, Roni Cohen-Pavon. In July, Mashinsky was taken into custody and has since denied accusations of fraud and market manipulation. On the other hand, Cohen-Pavon admitted to four offenses on September 13 and is set to face sentencing in December.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.