As part of its recovery mission, U.S. Bitcoin Corp. (USBTC) is making a bold move that looks to propel its mining operation into the elite class of the industry. In a deal with Celsius Network, the miner has agreed to acquire $1.3 million worth of Crypto rigs, adding 12.2 exahash/second (EH/s) of computing power to its already substantial 270,000 mining rigs.
Management Fees and Incentives for the Fahrenheit Consortium
The miner is part of a consortium, named Fahrenheit, which was formed to win the bankruptcy auction for the Celsius assets. These assets include a lending portfolio, crypto assets, and 121800 mining machines – causing USBTC’s total number of mining rigs to total at least 270,000. This will place USBTC in the same league as mining giants such as Riot Platforms (RIOT), Core Scientific (CORZ), and Marathon Digital Holdings (MARA).
The miner also received a $15 million annual management fee for the mining assets. USBTC will use funds from operating expenses to cover the costs of managing acquired rigs for five years. A further $20 million in management fees will go to the Fahrenheit consortium, according to court filings. Incentives in the form of stocks will be provided to the consortium, from USBTC, to manage the Celsius assets.
USBTC’s Ambition to Become a Leading Mining Operation
U.S. Bitcoin Corp has partnered with Generate Capital, NextEra Energy, and Foundry to host 150,000 Bitcoin mining machines. The agreement signifies USBTC’s ambition to establish itself as a leading mining operation in the industry.
The miner has benefited greatly from the bankruptcies in the industry this past year, such as Compute North. With the current agreement, it has taken control of three major sites; two of these are managed by Generate Capital, and the third is a joint venture between USBTC and energy firm NextEra Energy.
USBTC’s Bold Move to Expand Mining Operation and Solidify its Position
In addition, USBTC is still actively involved in a merger with Canada’s Hut 8 Mining (HUT). USBTC’s acquisition of lucrative hosting deals enhances its capabilities, although the success of the merger remains uncertain. Other members included in the consortium are Proof Group Capital Management, Steven Kokinos, and Ravi Kaza.
USBTC is demonstrating that despite the crypto market crash, there are opportunities in the mining industry. With its bold move of adding 12.2 exahash/sec to its mining rigs and hosting deals with major firms, USBTC is looking to significantly increase its mining operation and cement its new status in the industry.
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