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Core Scientific is the world’s biggest bitcoin miner with a 10% share of global BTC hash rate. - 2
Stone Tower Air was the last recipient of payment from Core Scientific prior to bankruptcy filing.
A private aviation company that was “connected” with Core Scientific’s co-founder, CEO, and board co-chairman cost the bankrupt bitcoin miner $1.65 million, as reported.
With computing power of about 25 exahashes per second (EH/s), Core Scientific operates its own bitcoin (BTC) mining equipment and acts as a host for others. Approximately 50 bitcoins are mined by Core Scientific on a daily basis, and the most recent monthly update shows 1,295 bitcoin were mined in October.
Just before the company ceased loan repayment, the bankrupt bitcoin miner stopped sending payments to it. The corporation made its final payment to Stone Tower Air LLC. The bitcoin miner submitted a Chapter 11 bankruptcy filing in December.
According to Airfleets.net and several other online tools for tracking aircraft, Stone Tower Air flies an Embraer ERJ-135BJ Legacy 600.
Chief Mining Officer Russell Cann said in an emailed statement on Friday that, “For efficient travel and use of time, Stone Tower Air is a charter flight company used in the past by Core Scientific for primarily transporting employees, clients, and potential clients between our data center sites in remote locations.”
The majority of “associated” people are those who directly or indirectly hold or control 20% or more of the voting power of a specific corporation, according to the U.S. bankruptcy code.
How will they overcome the catastrophe
According to the chief mining officer, Core Scientific’s reorganization plan is in a prepared bankruptcy rather than a prepackaged or free fall procedure. That indicates that the majority of debt holders have approved the company’s plan, but not all of them. The use of bankruptcy courts to compel plan dissenters to follow it has occasionally occurred.
Investment bank B. Riley (RILY), one of the company’s largest unsecured creditors, published an odd letter this week proposing a debt restructuring deal for Core Scientific. According to Cann, B. Riley and the miner are cooperating closely. He continued that the proposal from the investment bank stipulated that all equipment lenders must accept the scheme.
Source: https://www.thecoinrepublic.com/2023/03/08/bitcoin-miner-spent-1-65-million-on-a-private-aviation-business/