US Bitcoin Corp to host 8,500 of Celsius’ mining rigs as part of asset management deal
Data center operator US Bitcoin Corp (USBTC) will host 8,500 Bitcoin (BTC) miners with an estimated hashrate of 820 petahash (PH) belonging to bankrupt crypto lender Celsius at its Alpha Site, according to an Aug. 31 press statement.
According to the statement, this represents part of an arrangement that could see it manage up to 310,000 Bitcoin miners from Celsius and other clients, such as Teslawatt, Foundry USA, Marathon Digital, Decimal Group, Sphere 3D, and its machines.
In May, USBTC, as a member of the Fahrenheit LLC consortium alongside other partners, secured the auction to oversee Celsius assets. These assets include a lending portfolio and approximately 122,000 mining machines.
USBTC’s responsibilities encompass the management of the insolvent lender’s mining division, alongside the pivotal role of facilitating the establishment and operation of a 100-megawatt Bitcoin mining facility.
Meanwhile, when the bankrupt lender completes its restructuring process, the miner has a separate right to enter into operating and service agreements with the new firm. However, these agreements are subject to the approval of the bankruptcy court.
Speaking on the deal, USBTC president Asher Genoot described it as a defining milestone for the mining industry. Genoot said:
“As we drive forward in conjunction with Fahrenheit, we’re embarking on a new chapter that builds upon that success. The synergy between USBTC, Celsius, and Fahrenheit represents our commitment to redefining the mining industry.”
USBTC has completed its merger with Bitcoin miner Hut 8 Mining Corp. The announcement of this merger, initially made in February, culminated in the formation of a new entity named Hut 8 Corp.