USBTC Aims to Become Bitcoin (BTC) Mining Giant After Deal to Buy Celsius Assets
US Bitcoin Corp. (USBTC) is looking to be one of the largest miners in the US by increasing its computing power by 12.2 exahashes/second (EH/s), following a deal to buy mining assets from bankrupt lender Celsius, according to a press release. Press.
The miner is part of a consortium, called Fahrenheit, that won a bankruptcy auction for Celsius assets, which include a lending portfolio, crypto assets and 121,800 mining machines. Once it brings all mining rigs online, its fleet will reach at least 270,000 mining rigs, the miner told CoinDesk. This will raise its computing power to the ranks of mining giants such as Riot Platforms ( RIOT ), Core Scientific ( CORZ ), and Marathon Digital Holdings ( MARA ).
Under the Celsius deal, USBTC will enter into one or more operating and services agreements to be the “exclusive operator” of the Celsius mining fleet, the miner said. In addition, USBTC will receive a $15 million annual mine asset management fee, net of operating expenses, for the five years it manages the equipment, the firm added. That’s $75 million above costs, subject to USBTC meeting certain operational requirements.
Another $20 million in management fees will go to the Fahrenheit consortium, court filings show. The consortium will also receive equity incentives in the new company that will house the Celsius assets. The USBTC also needs to build 100 megawatts (MW) of infrastructure to house the Celsius platforms and provide a plan to build another 240 MW of capacity at a post-meter site.
The Miami-based firm has managed to massively increase its operational capabilities in recent months, taking advantage of the opportunities created by the bankruptcies. It started with a single location in Niagara Falls, New York, but has now taken control of three locations previously operated by Compute North, which filed for Chapter 11 in September 2022. Two of them are owned by the investment firm energy firm Generate Capital, while the third is a joint venture between USBTC and energy firm NextEra Energy.
USBTC has managed to secure hosting arrangements for 150,000 cars at its facilities. It is also undergoing a merger with Canada’s Hut 8 Mining (HUT).
Other members of the consortium that will manage the Celsius assets are Proof Group Capital Management, Steven Kokinos and Ravi Kaza.
UPDATE (May 25, 1:30 UTC): Changes subtitle to show total potential management fees, specifies USBTC will have at least 270,000 mining rigs after deal.
