- Celsius and Core Scientific have resolved their age-long dispute with a $45 million deal.
- Celsius to pay $14 million to Core Scientific to acquire its 85-acre mining site in Texas.
Celsius and Core Scientific Resolve Mining Dispute
Celsius and Core Scientific have finally ended their legal dispute.
The parties made a $45 million deal described as “fair, equitable, and carefully negotiated” as the dispute ended.
“After months of negotiations, Celsius and Core have now consensually resolved their long-running disputes and agreed to a global settlement that will fully resolve this litigation,” The court filing reads.
The Dispute
The dispute arose between Core Scientific, a publicly traded American Bitcoin miner, and Celsius, a bankrupt crypto lender, over unpaid dues.
Core Scientific had a hosting agreement with Celsius where the Bitcoin miner agreed to host 37,000 Bitcoin mining rigs that belonged to Celsius.
However, when Celsius declared bankruptcy in 2022, it defaulted on the agreed payment of power bills and fees. In December 2022, when Core Scientific filed for bankruptcy, Celsius owed $5.4 million in hosting fees to the Bitcoin miner.
The two crypto-centric companies instituted legal actions over the contract.
Core Scientific requested its hosting payment, while Celsius argued that Core Scientific independently increased the power rates as opposed to the contract agreement.
In January 2023, Core Scientific severed its hosting agreement with Celsius Network and shut down Celsius’ rigs. This led to a heightened legal tension between the two companies.
The Resolution
The $45 million deal marks the latest update and the end of the long-standing litigation.
“After months of negotiations, Celsius and [Core Scientific] have now consensually resolved their long-running disputes and agreed to a global settlement that will fully resolve this litigation,” The court filing reads.
The deal includes the acquisition of Core Scientific’s Cedarvale 85-acre mining site situated in Texas by Celsius.
Celsius has agreed to pay $14 million in cash to Core Scientific for the sale of its mining site.
The Cedarvale mining site is described as a “partially developed non-operational” mining site with 215 megawatts of power. According to the settlement terms, Core Scientific will hand over the designs of the mining site to Celsius to enable the crypto lender to complete the site’s construction.
The acquisition of the mining site by Celsius promises to be a key component in its rebranded mining business plans.
The American Bitcoin miner also released its legal claims worth $31 million, which made the total value of the settlement $45 million. The deal also includes the acquisition of Core Scientific’s Cedarvale 85-acre mining site situated in Texas by Celsius.
Although the parties have agreed to the settlement terms, the deal requires court approval before making it official.
Adam Sullivan, the new CEO of Core Scientific, expressed satisfaction at the complete resolution of the dispute. He also hinted at restructuring plans for the Bitcoin mining company this year as the company emerges from bankruptcy.
The settlement signifies the end of the contentious era for the two companies and the first step into restructuring.
