BTC mining firm offers its Bitmain coupons with an 85% discount.
Core Scientific, one of the largest Bitcoin (BTC) mining firms in the United States, has filed an emergency motion aiming to sell $6.7 million in Bitmain coupons.
According to the motion filed on January 25th, the coupons are essentially worthless for Core Scientific as they can “only be used to pay 30% of any new order of S19 Miners from Bitmain and cannot be exchanged with Bitmain for cash.”
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Compared to newer Bitmain models, the S19 model provides a lower hash rate output. In the motion, Core Scientific claimed that it doesn’t want to purchase new S19 Miners and doesn’t think that it is “the best use of Debtors’ cash.”
It is worth noting that Bitmain coupons have another downside, they expire between March and April 2023, when the company expects to finish its bankruptcy reorganization.
In the filing, the BTC mining firm claimed that several companies were interested in purchasing coupons, including Bitmain.
Core Scientific is set to sell its Bitmain coupons with an 85% discount. Therefore, Core Scientific offers $1.9 million of Bitmain coupons for $285,000 and $4.8 million in coupons for $713,000.
Regarding the price of the Bitmain coupons, Core Scientific stated:
While the aggregate purchase price of approximately $1.0 million would represent a significant discount to the approximately $6.7 million face value of the Bitmain Coupons, it would also represent significant value above what these Bitmain Coupons are worth to the Debtors and their estates: zero.
At the end of December, Core Scientific filed for Chapter 11 bankruptcy protection in Texas. Despite that, the company continues to operate as usual while “reaching a deal with senior security noteholders.”