Core Scientific (CORZ), a bitcoin miner, will shut down mining rigs linked to Celsius Mining, Core’s largest client with over 37,000 machines, after rejecting its contract in recent days. Both companies are filing for Chapter 11 bankruptcy: Celsius Mining and its parent company Celsius Network filed on July 13, 2022, while Core filed on December 21, 2022. The two companies have been involved in ongoing contract litigation. Core claims Celsius is not paying its dues, while Celsius claims Core unilaterally increased its power rate, which is not specified in their services agreement. Core’s bankruptcy Judge David R. Jones stated during a hearing on Tuesday that the motion to reject does not violate the automatic stay on Celsius’s property.
