Bitcoin mining company U.S. Bitcoin Corp (USBTC) has announced its intention to employ the mining assets of Celsius, the defunct crypto lender. The development follows the acquisition of application-specific integrated circuit (ASIC) machines from the bankrupt company by the Fahrenheit coalition, of which USBTC is a member. USBTC said it aims to revive the fleet of 121,800 Celsius machines and foresees a 12.2 exahash per second (EH/s) boost to its mining operations.
US Bitcoin Corp Assumes Control of Restructured Celsius Mining Unit
According to an announcement on May 25, 2023, U.S. Bitcoin Corp (USBTC) has plans to utilize the mining assets of the now-bankrupt crypto lender, Celsius. After multiple rounds of bidding for the restructured mining division of Celsius, USBTC submitted a winning bid for the Fahrenheit coalition. The Fahrenheit coalition is a group that consists of Ravi Kaza, Steven Kokinos, Proof Group Capital Management, Arrington Capital, and USBTC. Following the restructuring, Fahrenheit is set to assume the role of the management company for Celsius.
Fahrenheit is slated to receive an annual management fee of $20 million for its services under a five-year agreement. As part of the proposed restructuring, USBTC will enter into operating and services agreements with the restructured company, gaining exclusive control over all bitcoin mining rigs previously held by Celsius. USBTC will also receive an annual fee of $15 million, net of operating expenses, from Fahrenheit to supervise the mining division of the revamped entity.
“Our specialized expertise and track record of execution ultimately secured Fahrenheit’s successful bid to restructure Celsius,” Michael Ho, CEO of USBTC said in a statement. “Each member of the coalition brings extensive experience operating, optimizing, and scaling high-potential assets across Web3 markets.”
USBTC’s acquisition of the mining assets owned by Celsius follows the firm securing hosting agreements with five different companies for 150,000 bitcoin miners. Teslawatt, Marathon Digital, Foundry USA, Sphere 3D, and Decimal Group are collaborating with USBTC to deploy the machines. The latest acquisition of Celsius’s 121,800 ASIC mining rigs will contribute 12,200 petahash per second (PH/s) — which is equivalent to 12.2 exahash per second (EH/s) — to USBTC’s mining capabilities.