NYDIG agrees to settle Core Scientific’s $38.6m debt

• Core Scientific Inc. has agreed to send 27,403 crypto mining rigs to the NYDIG.
• The NYDIG will settle a debt of $38.6 million in exchange for the rigs.

Core Scientific Inc. and the New York Digital Investment Group have reached an agreement to dissolve a $38.6 million debt owed to the latter, in exchange for thousands of crypto-mining machines.

The multi-million dollar debt stems from a loan that was extended to the bankrupt crypto-miner in 2020 to facilitate the purchase of crypto-mining equipment. 

NYDIG to receive 27,403 mining rigs from Core Scientific

As part of the agreement, Core Scientific Inc will hand over 27,403 crypto mining rights to the New York-based crypto investment firm.

The filing made in the U.S. bankruptcy court for the southern district of Texas revealed that “the transfer of the ASICs Collateral in exchange for the full extinguishment of the NYDIG Debt will bring substantial benefits,” for the bankrupt crypto miner. 

The crypto miner believes that this agreement is in their best interest since the mining rigs that are to be handed over are not a part of their future business plans.

This means that losing them will have no effect on their operations. Furthermore, the principal debt amount plus the interest owed exceeds the value of the crypto mining rigs in question, making it a great deal for the bankrupt miner. The agreement is subject to approval by the bankruptcy court. 

In addition to easing Core Scientific’s debt obligations, this agreement will also put to rest any concerns that the NYDIG may have about the money owed to it.

The NYDIG had previously stated that they will object to Core Scientific’s recently announced credit line with B. Riley if the crypto miner didn’t settle its existing debts. 

Core Scientific’s share price has tanked more than 30% since the filing of this agreement with the NYDIG. Data from CNBC shows that the stock is currently trading at $0.33.