US Bitcoin Corp (USBTC), a prominent Bitcoin mining company, has announced plans to take over the mining assets of bankrupt crypto lender Celsius, adding a substantial 12.2 exahash per second (EH/s) to its hashrate. The development follows the successful bid by the Fahrenheit coalition — of which USBTC is a member — to acquire Celsius’ restructured mining division.
Background: Celsius Bankruptcy and Restructuring
Celsius Network, once a major crypto lending platform, filed for bankruptcy in 2022. Its fleet of Bitcoin mining rigs became a key asset in the restructuring process. The Fahrenheit coalition, comprising Ravi Kaza, Steven Kokinos, Proof Group Capital Management, Arrington Capital, and USBTC, won the bid to manage the restructured Celsius entity. Fahrenheit will receive an annual management fee of $20 million under a five-year agreement, while also overseeing the turnaround of Celsius’ mining operations.
USBTC’s Role and Compensation
Under the proposed restructuring, USBTC will enter into operating and services agreements with the revived company, granting it exclusive control over all Bitcoin mining rigs previously held by Celsius — a total of 121,800 ASIC machines. USBTC will earn an annual fee of $15 million (net of operating expenses) from Fahrenheit to supervise the mining division. “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.”
Hashrate Boost and Hosting Partnerships
USBTC had previously secured hosting agreements with five companies — Teslawatt, Marathon Digital, Foundry USA, Sphere 3D, and Decimal Group — for 150,000 Bitcoin miners. The addition of Celsius’ 121,800 ASIC rigs contributes 12,200 petahash per second (PH/s), equivalent to 12.2 EH/s, to USBTC’s mining capabilities. This represents roughly 2% of the global Bitcoin hashrate at the time of the announcement, significantly elevating USBTC’s position in the mining industry.
Industry Impact and Outlook
The deal marks a notable milestone in the post-bankruptcy consolidation of crypto mining assets. By integrating Celsius’ machines, USBTC can lower its average mining cost per bitcoin and improve economies of scale. The Fahrenheit coalition’s diverse expertise — spanning traditional finance, Web3 investments, and mining operations — is expected to bring fresh vitality to the restructured Celsius business. Analysts predict that such asset consolidation will accelerate industry centralization, pushing smaller miners to seek partnerships or exit. USBTC aims to gradually restart the machines in the second half of 2023, potentially propelling its total hashrate into the top five global mining pools.
For the Bitcoin network, the additional hashrate enhances security and decentralization — though concentration risks must be monitored. The market will closely watch the final approval of the Celsius restructuring plan and USBTC’s ability to efficiently deploy and profit from the newly acquired fleet.