USBTC Aspires to Become Leading Bitcoin Miner Following Acquisition of Celsius
The American-based mining company US Bitcoin Corp. (USBTC) announced on May 25 plans to increase the mine computing power by roughly 12.2 Exahash/second (EH/s). The USBTC team disclosed plans to acquire mining assets from the now-defunct Celsius.
According to the press release, the Bitcoin mining firm struck a deal to acquire Celsius mining equipment. On Thursday, the Celsius sales plan favored crypto consortium Fahrenheit.
Fahrenheit to Acquire Celsius Assets
In a court filing, the Fahrenheit team was announced as the successful bidder to acquire Celsius assets. It was reported that Fahrenheit would acquire Celsius assets worth over $2 million, including the lending platform,121800 mining machinery, and digital assets.
The Fahrenheit announcement revealed that USBTC and Arrington Capital are among the crypto firms part of the consortium. Reportedly other consortium members included Ravi Kaza, Steven Kokinos, and Proof Group.
In light of the USBTC announcement, the mining company revealed that its fleet would increase to 270000. The increase in mining rigs will enable the firm to generate high computing power to compete with best-performing miners such as Riot, Core Scientific, and Marathon Digital Holdings.
Besides achieving greater computing power, the Celsius deal allows USBTC to broaden its operation and service delivery. With the closure of Celsius acquisation, the deal will position USBTC as an “exclusive operator.”
Scope of Celsius Acquisition Deal
Based on the Celsius agreement, USBTC will receive a $15 million management fee yearly. The management fee will maintain the mining assets and operating costs. The USBTC is mandated to manage the rigs for five years.
The Celsius deal stated that USBTC is expected to receive approximately $75 million in five years which will be reimbursed according to the terms of the agreement. In return, the USBTC is needed to observe the operational requirement documented on the Celsius deal.
The court filing demonstrated that Fahrenheit would receive a management fee of $20 million. Per the court report, a new company will house Celsius assets, and all rewards will be remitted to Fahrenheit.
Correspondingly, the USBTC will be required to establish an infrastructure with 100 megawatts (MW) storage capacity for housing Celsius mining rigs. Afterward, the court report reveals that USBTC will be needed to formulate a well-structured plan for constructing an infrastructure with a capacity of 240MW with a behind-meter site.
Will USBTC Become the Leading Bitcoin Miner?
Recently, the USBTC has increased its operational output to seize market gaps following multiple bankruptcy filings. In 2022 USBTC acquired three sites owned by the bankrupt Computer North company.
It was observed that out of the three mining sites, two were owned by Generate Capital. The remaining mining site was partially owned by USBTC and NextEra Energy.
As of this writing, the USBTC is housing 150000 mining machines. The number of mining machines is expected to increase since USBTC and Hut 8 Mining (HUT) is engaging in advanced dialogue to enter into mergers and acquisitions.
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