Bitcoin Powerhouse USBTC Wins Bid To Manage Celsius Network’s Mining Division

In a significant development for the crypto industry, US Data Mining Group Inc. (USBTC), operating as US Bitcoin Corp, has emerged victorious in a competitive auction to manage the mining division of Celsius, a renowned player in the crypto space that filed for Chapter 11 bankruptcy protection last year.

According to the press release, USBTC, in collaboration with the Fahrenheit, LLC coalition, secured the winning bid after multiple rounds of rigorous bidding. 

The Fahrenheit coalition comprises prominent names in the crypto sphere, including Arrington Capital, Proof Group Capital Management, Steven Kokinos, Ravi Kaza, and USBTC itself. 

This alliance of industry pioneers brings a wealth of experience and expertise, having successfully operated and scaled high-potential assets within the web3 markets.

Financial Arrangements Highlight US Bitcoin Corp’s Value In Restructuring Deal

Under the proposed restructuring, Fahrenheit will oversee the broader Celsius entity, with USBTC serving as the exclusive operator of the mining assets previously owned by Celsius. 

This strategic move is expected to significantly boost USBTC’s total installed hashrate under management by approximately 12.2 EH/s once the 121,800 machines in the Celsius fleet are fully energized.

Celsius will enter into operational and services agreements with USBTC to facilitate restructuring. As part of the deal, Fahrenheit will pay USBTC a management fee of $20 million per year for a duration of five years. 

Additionally, USBTC will receive a fee of $15 million annually, net of operating expenses, for managing the mining division of the restructured company. These financial arrangements underscore the value and potential USBTC brings to the table.

Michael Ho, CEO of US Bitcoin Corp, expressed his satisfaction with the outcome, stating:

Our specialized expertise and track record of execution ultimately secured Fahrenheit’s successful bid to restructure Celsius.

He further emphasized the coalition’s commitment to building value for Celsius’ creditors and their eagerness to showcase their collective capabilities to the world.

However, it is important to note that the consummation of Celsius’ restructuring transaction is subject to approval by the Bankruptcy Court. 

If the court grants its approval, this collaboration between USBTC and Celsius could pave the way for a strong resurgence for the latter, following in the footsteps of successful partnerships like Generate Capital and NextEra Energy in the Compute North bankruptcy.

However, the news of US Bitcoin Corp’s selection to manage the restructured mining division of Celsius marks a turning point for both companies and highlights the resilience and potential of the cryptocurrency industry. 

With their combined expertise and resources, USBTC and the Fahrenheit coalition are poised to make a lasting impact on the crypto-mining landscape.

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