The miner will receive $15 Million management fee for the Celsiusย Networkย LLC mining assets, which it will operate exclusively.
Unitedย States Bitcoinย (BTC) Corp. (USBTC) is looking to be one of the largest miners in the Unitedย States by increasing its computing power by 12.2 exahash/ Second (EH/s), following a deal to buy mining assets from bankrupt lender Celsiusย Networkย LLC, reportsย by a press release.
The miner is part of a consortium, named Fahrenheit, that won a bankruptcy auction for the Celsiusย Networkย LLC assets, which include a lending portfolio, cryptocurrency assets and 121,800 mining machines. Once it brings all the mining rigs online, it will have total of about 270,000 mining rigs, the miner informed 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 Celsiusย Networkย LLC deal, USBTC will enter into one or more operating and services agreements to be the โexclusive operatorโ of the Celsiusย Networkย LLC mining fleet, the miner stated. Inย addition of that, USBTC will receive a $15 Million annual management fee for the mining assets, net of operating expenses, the company added.
Another $20 Million in management charges will go to the Fahrenheit consortium, court filings show. The consortium will likewise receive stock incentives in the new company that will house the Celsiusย Networkย LLC assets. USBTC likewise must build a 100 megawatts (MW) of infrastructure to house the Celsiusย Networkย LLC rigs, and provide a strategy for the buildout of another 240 MW of capacity in a behind-the-meter site.
The Miami-based company has managed to massively increase its operational capabilities in theย recent months, taking advantage of opportunities born out of bankruptcies. It started from a single site in Niagara Falls, New York, but has now taken control of 3 sites previously operated by Compute North, which filed for Chapter 11 in September 2022. 2 of those are owned by energy financing company Generate Financialย resources, while the third is a joint deal betwixt USBTC and energy company NextEra Energy.
USBTC has managed to secure hosting deals for 150,000 machines in its facilities. It is likewise undergoing a merger with Canadaโs Hut 8 Mining (HUT).
Other members of the consortium that will be managing the Celsiusย Networkย LLC assets are Proof Group Financialย resources Management, Steven Kokinos, and Ravi Kaza.
Aoyon Ashraf.
