• Core Scientific had stopped paying Priority Power Management in May 2022
• A judge approved a settlement with the bitcoin miner’s exclusive energy contract negotiator and Core Scientific will transfer over $20 million worth of equipment to the supplier.
• The dispute relates to two facilities in west Texas that were supposed to bring 1 gigawatt (GW) of power capacity to Core Scientific’s portfolio of assets.
Core Scientific Bankruptcy Judge Approves Transfer of Over $20M of Equipment
Core Scientific had ceased payments to their exclusive energy negotiator, Priority Power Management, in May 2022 due to concerns that the two facilities in West Texas, which were projected to provide 1 Gigawatt (GW) of power capacity, would not receive the desired power load. This resulted in Core Scientific halting all debt payments by October 2022 and filing for Chapter 11 bankruptcy protection in December.
Priority Power Management Claims
Priority Power Management asserted that they were owed approximately $30 million for their work up until the bankruptcy filing. As such, a settlement was reached under which Core Scientific will transfer more than $20 million worth of electrical equipment to the supplier.
Overview Of Dispute
The dispute between Core Scientific and their exclusive energy contractor started when it became clear that the two West Texas sites would not receive the expected power load as promised. This resulted in numerous halted payments from Core Scientific and eventually led them into bankruptcy proceedings.
Approval Of Settlement
A judge overseeing Core Science’s bankruptcy case approved a settlement between both parties under which Core Science will transfer more than $20 million worth of electrical equipment to Priority Power Management as payment for their services rendered prior to the bankruptcy filing.
Conclusion
After much deliberation, a judge has finally approved a settlement between both parties so that Priority Power Management can be compensated for its services provided up until now and also allowing Core Science access additional resources needed for their operations going forward.