U.S. Bitcoin Corp. to Boost Computing Power by 12.2 EH/s with $15M Management Fee Deal

U.S. Bitcoin Corp. to Boost Computing Power by 12.2 EH/s with $15M Management Fee Deal


U.S. Bitcoin Corp. will become one of the largest miners in the U.S., with a computing power of about 270,000 mining rigs, after acquiring mining assets from Celsius for a $15 million management fee.

The miner will receive $15 Million management fee for the Celsius Network LLC mining assets, which it will operate exclusively.

United States Bitcoin (BTC) Corp. (USBTC) is looking to be one of the largest miners in the United States by increasing its computing power by 12.2 exahash/ Second (EH/s), following a deal to buy mining assets from bankrupt lender Celsius Network LLC, reports by a press release.

The miner is part of a consortium, named Fahrenheit, that won a bankruptcy auction for the Celsius Network 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).

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Under the Celsius Network LLC deal, USBTC will enter into one or more operating and services agreements to be the “exclusive operator” of the Celsius Network LLC mining fleet, the miner stated. In 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 Celsius Network LLC assets. USBTC likewise must build a 100 megawatts (MW) of infrastructure to house the Celsius Network LLC rigs, and provide a strategy for the buildout of another 240 MW of capacity in a behind-the-meter site.

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The Miami-based company has managed to massively increase its operational capabilities in the 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 Financial 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 Canada’s Hut 8 Mining (HUT).

Other members of the consortium that will be managing the Celsius Network LLC assets are Proof Group Financial resources Management, Steven Kokinos, and Ravi Kaza.

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