Bitcoin Miner Spent $1.65 Million On a Private Aviation Business

According to recent reports, a private aviation company associated with Core Scientific, the world’s biggest bitcoin miner with a 10% share of global BTC hash rate, has cost the bankrupt company $1.65 million. Stone Tower Air LLC was the last recipient of payment from Core Scientific before the filing for Chapter 11 bankruptcy in December.

Core Scientific operates its own bitcoin mining equipment and hosts for others, with computing power of about 25 exahashes per second (EH/s). The company currently mines about 50 bitcoins daily, with the most recent monthly update revealing 1,295 bitcoins were mined in October.

Prior to the company ceasing loan repayment, it stopped sending payments to Stone Tower Air, a charter flight company that flies an Embraer ERJ-135BJ Legacy 600, which is “connected” to Core Scientific’s co-founder, CEO, and board co-chairman. The aviation company was primarily used to transport employees, clients, and potential clients between the company’s remote data center sites.

Core Scientific’s chief mining officer, Russell Cann, stated that the corporation’s reorganization plan is currently in a prepared bankruptcy, rather than a prepackaged or free fall procedure, indicating that most debt holders have approved the plan. However, not all creditors have approved the company’s plan, thus forcing Core Scientific to use the bankruptcy courts to compel these dissenters to follow the plan.

One of the company’s largest unsecured creditors, investment bank B. Riley (RILY), has proposed a debt restructuring deal for Core Scientific. The investment bank and the miner are working together closely, and the proposal states that all equipment lenders must accept the scheme.

Despite the setback, Core Scientific remains optimistic about the future of bitcoin mining. In October 2021, the company secured $100 million in funding from several institutional investors, including BlackRock and Marathon Digital Holdings. The funding will be used to expand Core Scientific’s operations and support the development of alternative energy sources for bitcoin mining.

Alternative energy sources have gained significant popularity in recent years due to the growing concern over bitcoin mining’s energy consumption. According to the Cambridge Bitcoin Electricity Consumption Index (CBECI), bitcoin mining currently consumes more energy than the entire country of Argentina. This has prompted many bitcoin mining companies, including Core Scientific, to explore alternative energy sources such as solar, wind, and hydroelectric power.

Core Scientific has also taken measures to improve the efficiency of its mining operations. The company is currently using immersion cooling technology, which involves submerging mining rigs in a specially designed mineral oil that conducts heat away from components. This allows the rigs to operate at a lower temperature, reducing energy consumption and increasing the efficiency of the mining process.

In addition, Core Scientific has partnered with technology companies such as Nvidia and Advanced Micro Devices (AMD) to develop custom software and hardware solutions for its mining operations. The company also offers its mining infrastructure as a service, allowing individuals and companies to lease mining rigs and benefit from Core Scientific’s expertise and technology.

Core Scientific’s bankruptcy filing has raised concerns about the future of bitcoin mining in the US. The country’s regulatory environment for bitcoin mining is still unclear, and the bankruptcy of a major bitcoin miner could discourage potential investors and hinder the growth of the industry. However, many experts believe that the bankruptcy of Core Scientific is an isolated incident and that the bitcoin mining industry will continue to grow and evolve in the coming years.

In conclusion, while the bankruptcy of Core Scientific has taken a toll on the company and its creditors, the industry remains optimistic about the future of bitcoin mining. The company’s efforts to use alternative energy sources and improve the efficiency of mining operations demonstrate its commitment to sustainability and innovation. While the bankruptcy filing raises concerns about the regulatory environment for bitcoin mining in the US, it is hoped that the industry will continue to thrive and contribute to the global economy in the future.


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