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Tuesday, May 30, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


US Bitcoin buys mining assets from bankrupt Celcius Network

Increase in hashrate brings USBTC in line with sector power players

US Bitcoin buys mining assets from bankrupt Celcius Network
Bitcoin mining server farms without ASICs installed. Image via US Bitcoin Corp.

Bitcoin miner US Bitcoin Corp. (USBTC) is looking to become one of the largest Bitcoin mining firms in the country by boosting its computing hashrate to 12.2 exahashes per second (EH/s).

Announced on Thursday, the increase in computing power comes as a consequence of the company’s recent agreement to buy mining assets from the bankrupt crypto lender, Celcius Network.

12.2 EH/s is considered a significant amount of computing power in Bitcoin mining in terms of scale, competitiveness, overall network influence and comparison to other companies in the market.

USBTC is part of a coalition network called Fahrenheit that combines mining efforts. The coalition will provide management duties for the reconstituted Celcius entity after restructuring. Subsequently, Fahrenheit will receive a $20 million management fee as part of its its five-year deal with Celsius.

“Our specialized expertise and track record of execution ultimately secured Fahrenheit’s successful bid to restructure Celsius,” said Michael Ho, CEO of USBTC.

“Each member of the coalition brings extensive experience operating, optimizing, and scaling high-potential assets across web3 markets.”

As part of the proposed restructuring, USBTC plans to establish one or more operating and services agreements with the restructured company.

Read more: New Texas bill closes off financial incentives to Bitcoin miners

Read more: The world’s largest cryptocurrency exchange leaves Canadian market

Fleet will be 270,000 mining rig strong when operational

Through these agreements, USBTC will assume exclusive operational control over all the mining assets formerly owned by Celsius. Additionally, in exchange for its services, USBTC an annual fee of $15 million from Fahrenheit, which will be adjusted for operating expenses. The primary responsibility of USBTC will be to oversee and manage the mining division of the restructured company.

Once all of its mining rigs are operational, its fleet will consist of a minimum of 270,000 mining rigs. This substantial increase in capacity will place it among the top mining giants, comparable to companies like Riot Platforms (NASDAQ: RIOT), and Marathon Digital Holdings (NASDAQ: MARA) in terms of computing power.

USBTC is an industrial-scale bitcoin miner that also designs, builds and manages mining sites with access to low-cost, sustainable energy sources. The company has four sites across the United States with a collective capacity of 730 megawatts of electricity.

Earlier this year, the company also announced an all-stock merger of equals with Hut 8 Mining Corp. (NASDAQ: HUT), which will be renamed Hut 8 Corp when the merger closes.

Other members of the Fahrenheit coalition include Arrington Capital, Proof Group Capital Management, Steven Kokinos and Ravis Kaza.


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