Business
US Bitcoin Corp selected to manage restructured mining division of Celsius Network LLC
Company to add more than 120,000 miners to its managed fleet, increase total hashrate under management by approximately 12.2 EH/s MIAMI--(BUSINESS WIRE)-- US
About this update from Hut 8 Corp.
[{"type":"text","content":"\nCompany to add more than 120,000 miners to its managed fleet, increase total hashrate under management by approximately 12.2 EH/s\n\n\n MIAMI--(BUSINESS WIRE)--\nUS Data Mining Group Inc. dba US Bitcoin Corp (“USBTC”), which announced an all-stock merger of equals with Hut 8 Mining Corp. (NASDAQ: HUT) on February 7, 2023, today announced that it has been selected after multiple rounds of bidding in a competitive auction process to manage the restructured mining division of Celsius Network LLC (“Celsius”), which filed for Chapter 11 bankruptcy protection in July 2022. USBTC submitted the winning bid as part of the Fahrenheit, LLC (“Fahrenheit”) coalition.\n\n\nThe Fahrenheit coalition includes crypto industry pioneers USBTC, Arrington Capital, Proof Group Capital Management, Steven Kokinos, and Ravi Kaza. Upon restructuring, Fahrenheit will serve as the management company of the broader Celsius entity. Fahrenheit will receive a management fee of $20 million per year as part of a five-year agreement with Celsius.\n\n\n“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.”\n\n\nUnder the proposed restructuring, USBTC will enter into one or more operating and services agreements with the restructured company to become the exclusive operator of all mining assets formerly owned by Celsius. In addition to a portion of the management fee, USBTC will also receive from Fahrenheit a fee of $15 million per year net of operating expenses to manage the mining division of the restructured company. USBTC expects to increase its total installed hashrate under management by approximately 12.2 EH/s upon full energization of the Celsius fleet of 121,800 machines.\n\n\n“We are deeply committed to building value for the creditors of Celsius,” said Asher Genoot, President of USBTC. “Just as we did with Generate Capital and NextEra Energy in the Compute North bankruptcy, we will help another deserving partner emerge from bankruptcy stronger than ever. We’re incredibly excited to get to work and show the world what we can achieve together.” The consummation of Celsius’ restructuring transaction is subject to appro...