The Miami-based U.S. Bitcoin Corp. (USBTC) is on track to become a leading player in U.S. mining operations after securing a deal to purchase mining assets from bankrupt lender Celsius.
USBTC, part of the consortium known as Fahrenheit, emerged as the winner in the bankruptcy auction, gaining access to Celsius’ lending portfolio, crypto assets, and an impressive fleet of 121,800 mining machines.
USBTC plans to bring all the acquired mining rigs online, resulting in a fleet comprising a minimum of 270,000 mining rigs. This expansion will catapult their computing power to the level of industry giants like Riot Platforms, Core Scientific, and Marathon Digital Holdings.
As part of the Celsius deal, USBTC will enter into exclusive operating and services agreements, assuming the role of the “exclusive operator” of the Celsius mining fleet. In addition, USBTC will receive an annual management fee of $15 million for the mining assets, net of operating expenses, over a five-year period.
Fulfilling certain operational requirements will grant USBTC an additional $75 million, while the Fahrenheit consortium will receive $20 million in management fees along with stock incentives in the newly established company overseeing the Celsius assets, court filings show.Â
USBTC’s expansion began at a single site in Niagara Falls, New York, and has now expanded to encompass three former Compute North sites. Two of these sites are owned by energy investment firm Generate Capital, while the third is a joint venture between USBTC and energy firm NextEra Energy.
USBTC has secured hosting agreements for 150,000 machines in its facilities and is currently in the process of merging with Canada’s Hut 8 Mining (HUT). Proof Group Capital Management, Steven Kokinos, and Ravi Kaza are additional members of the Fahrenheit consortium responsible for managing the Celsius assets.
The strategic acquisition of Celsius mining assets and USBTC’s ongoing expansion initiatives position them as a prominent force in the U.S. mining industry.
