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US Bitcoin Corp. (USBTC) aims to establish itself as a leading mining operation in the United States by augmenting its computational capacity by 12.2 exahash/second (EH/s), as stated in a press release. This expansion comes as a result of USBTC's recent acquisition of mining assets from the insolvent lender Celsius.
The miner, belonging to a consortium called Fahrenheit, successfully acquired the Celsius assets through a bankruptcy auction. These assets comprise a lending portfolio, various crypto assets, and an impressive collection of 121,800 mining machines. As per the miner's statement to CoinDesk, once all the mining rigs are operational, their fleet will expand to a minimum of 270,000 rigs. This substantial increase in computing power will position them alongside mining industry giants like Riot Platforms (RIOT), Core Scientific (CORZ), and Marathon Digital Holdings (MARA).
Under the Celsius deal, USBTC has been granted the exclusive rights to operate the Celsius mining fleet through one or more operating and services agreements, as announced by the mining company. In addition to this privilege, USBTC will receive an annual management fee of $15 million for overseeing the mining assets, after deducting operating expenses, throughout the five-year duration of their rig management. This translates to a remarkable $75 million in earnings, on top of their expenses, contingent upon USBTC's fulfillment of certain operational requirements.
Court filings reveal that an additional $20 million in management fees is set to be awarded to the Fahrenheit consortium. As part of their compensation, the consortium will also receive stock incentives in the newly established company that will oversee the Celsius assets. In order to facilitate the operations of the Celsius rigs, USBTC is obligated to construct a robust infrastructure capable of supporting 100 megawatts (MW). Moreover, they are required to present a detailed plan outlining the development of an additional 240 MW capacity at a designated behind-the-meter site.
The Miami-based company has significantly enhanced its operational capacity over the past few months, capitalizing on opportunities arising from bankruptcy cases. Initially established at a single location in Niagara Falls, New York, the firm has now gained control of three additional sites previously operated by Compute North, which underwent Chapter 11 bankruptcy proceedings in September 2022. Among these sites, two are owned by Generate Capital, an energy investment firm, while the third is a joint venture between USBTC and NextEra Energy, an energy company.
USBTC has successfully secured hosting agreements for a staggering 150,000 machines within its facilities. Furthermore, it is currently in the process of merging with Hut 8 Mining, a prominent Canadian company (HUT).
In addition to Proof Group Capital Management, Steven Kokinos, and Ravi Kaza, the consortium overseeing the Celsius assets also includes other members.