U.S. Bitcoin Corp (USBTC) has announced plans to take over and operate the mining assets of bankrupt crypto lender Celsius, following a successful bid by the Fahrenheit coalition, of which USBTC is a member. The company aims to revive Celsius’s fleet of 121,800 ASIC miners, which is expected to boost USBTC’s hashrate by 12.2 exahash per second (EH/s) (equivalent to 12,200 PH/s).
Fahrenheit Coalition Wins Celsius Mining Restructuring Bid
According to a May 25, 2023 announcement, USBTC, as part of the Fahrenheit coalition (which includes Ravi Kaza, Steven Kokinos, Proof Group Capital Management, Arrington Capital, and USBTC), submitted the winning bid for Celsius’s restructured mining division. Under the restructuring plan, Fahrenheit will act as the management company for Celsius, receiving an annual management fee of $20 million over a five-year agreement. USBTC will enter into operating and service agreements with the restructured entity, gaining exclusive control over all bitcoin mining rigs previously held by Celsius. In return, Fahrenheit will pay USBTC an annual fee of $15 million, net of operating expenses, to oversee the mining operations.
USBTC’s Hashrate Expansion and Previous Partnerships
“Our specialized expertise and track record of execution ultimately secured Fahrenheit’s successful bid to restructure Celsius,” said Michael Ho, CEO of USBTC. “Each member of the coalition brings extensive experience operating, optimizing, and scaling high-potential assets across Web3 markets.” Prior to this acquisition, USBTC had secured hosting agreements with five companies (Teslawatt, Marathon Digital, Foundry USA, Sphere 3D, and Decimal Group) to deploy 150,000 bitcoin miners. The addition of Celsius’s 121,800 ASIC miners will increase USBTC’s mining capacity by 12.2 EH/s, further solidifying its position in the Bitcoin mining landscape.
As of press time, USBTC has not disclosed a specific timeline for restarting all miners, but the deal marks a significant milestone in the disposition of Celsius’s assets, injecting fresh momentum into the distressed mining market.