Crypto mining company Core Scientific negotiated with the New York Digital Investment Group (NYDIG) to repay an arrearage of $38.6 million by handing over greater than 27,000 mining devices utilized as security.

In a court filing, the firm said the mining rigs were no more vital to its operations and also plans. The firm is currently waiting to obtain the approval of the United States Bankruptcy Court for the Southern District of Texas, which is in charge of the proceedings.While the firm approved that the step would negatively influence its revenue, Core Scientific highlighted that the long-lasting advantages of repaying its financial obligation”surpass the instant loss. “The crypto-mining company believes that the transfer is the very first step toward ending up being a lot more profitable as well as sustainable.

The company is additionally changing its procedures to what it called a”somewhat smaller, but more reliable” fleet of mining rigs which were in storage space and not mining Bitcoin (BTC). The firm plans to alleviate several of the losses sustained by the transfer of assets by installing the S19 XP mining gears, which are not currently in operation. Related: Core Scientific files activity to offer over$6M in Bitmain vouchers The crypto mining business filed for Chapter 11 insolvency on Dec. 21.

The filing occurred months after the firm disclosed that it was going through economic distress in a filing with the Securities as well as Exchange Commission. At the time, the company mentioned increased power expenses, a boost in the international Bitcoin hash rate, low Bitcoin costs and the Celsius personal bankruptcy as the factors for its monetary struggles. On Jan. 31, the personal bankruptcy court authorized the mining company’s plan to borrow $70 million to replace its existing financing. With this, Core Scientific can secure a loan from financial investment financial institution B. Riley which is also among the company’s financial institutions.