Anchorage Digital, a reputable firm specializing in cryptocurrency custody, and the prominent mining equipment manufacturer Bitmain are poised to acquire ownership stakes in Core Scientific as part of the company’s comprehensive reorganization strategy.

According to a legal filing dated August 8th, submitted to the United States Bankruptcy Court for the Southern District of Texas, Bitmain has outlined its intention to divest 27,000 units of the S19j XP Miner to Core Scientific. This exchange will yield approximately $23 million in cash and an additional $54 million in corporate equity through newly issued common interests. Notably, Anchorage Digital stands out as the singular entity that provided financial support to Core Scientific and opted for an equity-based conversion of its outstanding claim.

Alternately, other entities such as BlockFi and Mass Mutual Asset Finance have chosen to engage in negotiations for the resolution of their claims. Pending approval, this proposed restructuring plan is expected to undergo scrutiny from creditors during a voting process. The debtors themselves anticipate a significant reduction in capital requirements, surpassing the $30 million mark, by substituting equity shares for cash and reaching a settlement with Celsius Network.

Following its decision to file for Chapter 11 bankruptcy in December 2022, citing a decline in revenue and the plummeting valuation of Bitcoin, Core Scientific found itself grappling with financial challenges leading up to the filing. These issues were exacerbated by the collapse of Celsius and the subsequent cryptocurrency market crash. Despite these setbacks, Core Scientific has continued its BTC mining operations, maintaining its position as one of the foremost mining companies by hash rate while undergoing the intricate process of corporate restructuring.