Core Scientific and Celsius Mining Settle Litigation with Texas Data Center Purchase Agreement

Core Scientific has agreed to sell its Cedarvale Bitcoin mining site in Texas to Celsius Mining LLC for $14 million. The deal will settle ongoing litigation and allow Celsius to expand its Texas data centers.

Timeline of Celsius

Core Scientific has agreed to sell bankrupt crypto lender Celsius its Cedarvale mining location in Ward County, Texas for a price tag of $14 million, according to a Thursday court filing.

Celsius has filed a motion in its bankruptcy case to resolve ongoing litigation and disputed contracts and claims, seeking court approval of a settlement agreement and purchase agreement with Core Scientific.

Bankrupt cryptocurrency lending company, Celsius' (CRYPTO: CEL) successor company is likely to appoint former Algorand (CRYPTO: ALGO) CEO Steve Kokinos who stepped down from his role in July 2022. He is also a co-owner of Fahrenheit which won the Celsius auction in May 2023 wherein it undertook around $500 million worth of liquid crypto.

EquitiesFirst is a private lending platform that owed Celsius approximately $439 million in cash and bitcoin as of July 2022. Celsius had initially obtained collateralized loans from EquitiesFirst in 2019 but was unable to return the collateral in 2021.

In a recent development surrounding the Celsius Network bankruptcy case, Judge Martin Glenn has made a pivotal decision that could shape the future of crypto stakeholders and the broader digital currency landscape.

Judge Martin Glenn has denied the request for establishing a separate class of stakeholders in the Celsius Network bankruptcy saga. This decision, revealed in a document filed on August 25, also sidestepped the crucial question of whether the CEL token qualifies as a security.

Alexander Mashinsky – the founder of bankrupt crypto lending platform Celsius – has been arrested and indicted on federal charges. Former Celsius Head Taken into Custody Celsius was founded in 2018.

The Official Committee of Celsius Unsecured Creditors has announced an upcoming staff meeting slated for August 25th at X Spaces. The primary agenda will revolve around discussions regarding the proposed restructuring plan and disclosure statement.

The troubled crypto lender, Celsius Network, has received judicial approval to seek creditor endorsement for its bankruptcy escape plan. Under this plan, a consortium going by the name of Fahrenheit is poised to acquire Celsius' assets, forming a fresh corporate entity.

Crypto lending firm Celsius, which faced bankruptcy proceedings last year, has received the green light from a judge to proceed with a voting process concerning the sale of its assets to the Fahrenheit consortium. Creditors could receive 67–85% of holdings, mainly in Bitcoin and Ethereum.