During the 2021 crypto bull, lenders issued over $ 4 billion in loans collateralized by Bitcoin mining hardware. These financial instruments backfired on BTC mining companies as the sector trended to the downside, and they defaulted on their loans.
According to a report from Bloomberg, bankrupt Bitcoin miner Core Scientific will return over 27,000 mining machines to crypto lender New York Digital Investment Group (NYDIG). The decision aims to try to write off a $ 38.6 million debt with the firm.
Crypto Lender Takes It All
BTC miner Core Scientific received court approval to send the machines to NYDIG. The parties will complete the transaction in the coming months.