USBTC Acquires Celsius Assets With Ambition To Be The Next Mining Giant

Key Points:

• USBTC has successfully acquired the assets of bankrupt crypto company Celsius.
• The acquisition makes USBTC one of the largest miners in the United States by increasing computing power to 12.2 exahash/s (EH/s).
• Miners can receive up to $75 million in management fees for Celsius mining rigs within 5 years.

According to a press release, US Bitcoin Corp (USBTC) said it had been selected to manage Celsius Network LLC’s restructured mining division.

USBTC won a bankruptcy auction for Celsius assets, including a loan portfolio, crypto assets, and 121,800 mining machines. Once it brings all the mining rigs online, its fleet will total at least 270,000 mining rigs.

The acquisition agreement made this miner one of the largest miners in the United States by increasing computing power to 12.2 exahash/s (EH/s), on par with those of mining giants like Riot Platforms (RIOT), Core Scientific (CORZ), and Marathon Digital Holdings (MARA).

USBTC has submitted the winning bid as part of the Fahrenheit, LLC (“Fahrenheit”) consortium. Following the restructuring, Fahrenheit will act as the management company of the broader Celsius organization. Fahrenheit will receive a $20 million annual management fee for a five-year agreement with Celsius. USBTC will also receive a fee of $15 million per year from Fahrenheit after deducting operational costs to manage the restructured company’s mining division.

USBTC is a leading industrial-scale operator of bitcoin mining sites, specializing in the design, construction, and management of sites with access to low-cost and sustainable energy sources. The company operates four locations across the US with a combined capacity of more than 730 MW of electricity and generates revenue through self-exploiting, hosting, using managed infrastructure, and selling equipment.

Earlier, this operator announced an all-equity merger with Hut 8 Mining Corp. on February 7, 2023, subject to normal closing conditions. The combined company will be named Hut 8 Corp. and shall be a United States-based entity.

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