According to a press release, US Bitcoin Corp. aims to become a prominent player in the United States mining industry by enhancing its computing power with a boost of 12.2 exahash/second. This increase comes as a result of the company’s recent agreement to acquire mining assets from bankrupt lender Celsius.
The mining company, affiliated with a consortium called Fahrenheit, successfully secured the Celsius assets through a bankruptcy auction. These assets encompass a lending portfolio, digital assets, and a fleet of 121,800 mining machines.
With plans to activate all these mining rigs, the company’s total fleet will exceed 270,000 mining rigs, propelling it into the league of mining giants like Core Scientific and Marathon Digital Holdings.
As part of the agreement with Celsius, US Bitcoin Corp. announced its intention to become the sole operator of the Celsius mining fleet through one or more operating and services agreements.
Additionally, it will be entitled to an annual management fee of $15 million for overseeing the mining assets, after deducting operating expenses, throughout the five-year period of rig management. This arrangement could potentially yield $75 million in revenue, subject to US Bitcoin Corp. meeting specific operational criteria.
According to court documents, an additional $20 million in management fees will be allocated to the Fahrenheit consortium. Furthermore, the consortium will be granted stock incentives in the newly established company that will encompass the Celsius assets.
In addition to these obligations, US Bitcoin Corp. is tasked with constructing a 100-megawatt infrastructure to accommodate the Celsius rigs and presenting a detailed plan for expanding the capacity by an additional 240 MW.
Over the past few months, the Miami-based company has significantly expanded its operational capacities by capitalizing on opportunities arising from bankruptcies.
While initially operating from a single site in Niagara Falls, New York, it has now gained control of three additional sites previously managed by Compute North. Compute North filed for Chapter 11 bankruptcy protection in September 2022.