Core Scientific has agreed to pay off a $38.6 million debt to the New York Digital Investment Group (NYDIG) by transferring over 27,000 mining machines.
The company is waiting for approval from the US Bankruptcy Court for the Southern District of Texas.
The move is expected to have a short-term negative impact on revenue, but Core Scientific believes the long-term benefits of paying off the debt outweigh the immediate loss.
The company is shifting to a smaller but more efficient fleet of mining rigs and plans to offset losses by installing unused S19 XP mining rigs.
Core Scientific filed for Chapter 11 bankruptcy in December 2021 due to increased electricity costs, low Bitcoin prices, and other factors. The court approved a plan to borrow $70 million from investment bank B. Riley on January 31.
