Core Scientific and NYDIG Agree To Settle $38.6 Million Debt

• Core Scientific and NYDIG have reached an agreement to settle the $36.8 million debt owed to NYDIG.
• The crypto miner will hand 27,403 crypto mining rigs to NYDIG to settle the debt.
• The settlement has led to an 18.5% rise in Core Scientific’s share price.

Crypto mining firm Core Scientific has reached an agreement with the New York Digital Investment Group (NYDIG) to settle an outstanding debt of $38.6 million in exchange for crypto mining rigs. The crypto miner had borrowed more than $77 million from the New York-based investment group in October 2020 to acquire mining equipment.

According to a recent filing made with the bankruptcy court for the southern district of Texas, Core Scientific will hand over 27,403 crypto mining rigs to NYDIG to settle the debt. This deal is subject to approval from the bankruptcy judge. As of December last year, the crypto miner operated 153,000 mining rigs.

Core Scientific believes that “the transfer of the ASICs Collateral in exchange for the full extinguishment of the NYDIG Debt will bring substantial benefits.” According to the miner, losing the ASIC machines will not affect their operations since they’re not a part of current operations and future business plans.

The filing further revealed that this deal is in the best interest of the crypto miner because the principal debt amount exceeds the value of the crypto mining rigs that will be handed over to the NYDIG. News of the agreement led to a 31% decline in Core Scientific’s share price. The stock is currently trading at $0.33.

This settlement will also help Core Scientific to go ahead with its deal with investment bank B. Riley, who announced a $70 million credit facility for the bankrupt crypto miner earlier this week. The NYDIG previously stated that it would object to the B. Riley deal if Core Scientific didn’t reach an agreement with its own outstanding debt.