Insolvent Core Scientific Files Petition For Selling $6.6M Bitmain Coupons

• According to the filing, the vouchers are essentially worthless to Core Scientific.
• Core Scientific says it won’t be buying any more S19 miners.

As court documents show, on January 25, bankrupt Bitcoin mining company Core Scientific filed an emergency petition in an attempt to sell $6.6 million worth of Bitmain coupons.

According to the filing, the vouchers are essentially worthless to Core Scientific because of the constraints placed on them. This voucher can only be exchanged for S19 Miners Bitmain purchases of 30% of the total purchase price, and cannot be exchanged for cash at Bitmain.

Not Interested In S19 Miner Anymore

Coupon only applies to the S19 model. Which results in a lower hash rate than Bitmain’s latest model, but still provides a decent return on investment. Even with the availability of Bitmain Coupons, Debtors do not consider that leveraging their liquidity to acquire additional S19 Miners is the best use of Debtor’s resources, the company said.

When Bitmain emerges from its Chapter 11 bankruptcy restructuring, in March or April 2023, Bitmain coupons will expire. Additionally, Core Scientific says it won’t be buying any more S19 miners, either in Chapter 11 or after.

In addition to the motion, the corporation has been in talks with Bitmain and two potential third parties who are interested in purchasing vouchers at a deep discount. A $1.9 million Bitmain coupon sells for $285,000, while a $4.8 million coupon sells for around $713,000. This price amounts to 15% of the face value of the coupon. In addition, under this agreement, Core Scientific will add approximately $1 million to its cash reserves.