Core Scientific seeks to sell $6.6 million in Bitmain coupons
According to the records submitted with the court, on January 25 the defunct Bitcoin (BTC) mining business Core Scientific filed an emergency application in which they asked authorization to sell Bitmain vouchers with a value of $6.6 million. The vouchers were purchased from Core Scientific.
According to the petition, the coupons have been encumbered by a variety of limitations, which make them pointless for the purposes of Core Scientific's activities. To be more exact, the coupons may be used to pay for "just" 30% of any new order of S19 Miners placed with Bitmain; nevertheless, they cannot be redeemed for cash through Bitmain.
The coupons can only be used for Bitmain S19 models, which have a lower hash rate output in comparison to Bitmain's more recent models. "Even with the availability of the Bitmain Coupons, the Debtors do not believe that utilising their liquidity to purchase new S19 Miners is the best use of the Debtors' cash," the company claimed. "This is because the Debtors do not believe that using their liquidity to purchase new S19 Miners is the best use of the Debtors' cash." "The Debtors do not feel that using their liquidity to acquire additional S19 Miners is the best use of the Debtors' funds," which is short for "liquidity."
In addition, the Bitmain coupons will no longer be valid between March and April of 2023, which is around the time when the company anticipates that it will have emerged from its Chapter 11 bankruptcy reorganisation. In addition, Core Scientific has said that the company has no plans to acquire any additional S19 miners either during or after the duration of Chapter 11.
In addition to the motion, the company has been in conversation with Bitmain and two potential third parties interested in acquiring the vouchers at a significant price reduction. The individual sales of Bitmain coupons totalling $1.9 million for $285,000 and the sale of coupons totaling $4.8 million for roughly $713,000 each indicate about 15% of the face value of the coupons that were sold.