- The miner will up its computing power by 12.2 EH/s
- Their fleet will consist of more than 270,000 mining rigs
- They will get almost $100M from mining asset management fees
U.S. Bitcoin Corp. (USBTC) concluded a deal to buy Celsius’ mining assets after the crypto lender filed for bankruptcy. They have the ambition to become the biggest mining company in the US, CoinDesk reported, citing a press release. The miner will up its computing power by 12.2 EH/s.
Parent company Fahrenheit won the bankruptcy auction
USBTC is part of a conglomerate named Fahrenheit. It displaced other candidates for Celsius’ assets in the bankruptcy auction. Those include 122,000 mining machines and a lending portfolio.
The miner’s fleet will consist of more than 270,000 mining rigs once they bring all the rigs online, thereby increasing USBTC’s computing power to the ranks of Core Scientific, Riot Platforms, and Marathon Digital Holdings.
Michael Ho, CEO of USBTC, stated:
Our specialized expertise and track record of execution ultimately secured Fahrenheit’s successful bid to restructure Celsius. Each member of the coalition brings extensive experience operating, optimizing, and scaling high-potential assets across web3 markets.
$75M net from management fees for 5 years
USBTC will operate Celsius’ fleet exclusively under corresponding service agreements. The miner will also get a total of $75 million, net of operating costs, from mining asset management fees for five years.
According to court documents, Fahrenheit will receive another $20 million in management fees. They will also get stock incentives in the new platform that will host the Celsius assets.
USBTC will develop 100 MW infrastructure to host the mining rigs and create a plan to develop capacity of an additional 240 MW.
A track record of buying assets after bankruptcy
The company, which is based in Miami, has increased its operational capacity exponentially in the past few months. It took control of three platforms Compute North used to run. The firm filed for bankruptcy in September last year.
Asher Genoot, President of USBTC, commented the Celsius acquisition:
Just as we did in the Compute North bankruptcy, we will help another deserving partner emerge from bankruptcy stronger than ever.
The miner also secured hosting agreements on its premises for 150,000 machines and is currently undergoing a merger with Hut 8 Mining, a Canadian company.