Hut 8, a prominent Canadian Bitcoin mining company, has announced a significant move to expand its mining capabilities. On December 18, the firm revealed an interim agreement to establish a new mining site in Cedarvale, Texas. This strategic development is part of the Celsius Network bankruptcy proceedings. The Cedarvale site is expected to house nearly 66,000 miners and will operate with over 215 megawatts of energy. Asher Genoot, President of Hut 8, explained that this initiative serves a dual purpose: to build equity with Celsius creditors and to enhance the managed services business sector. The company anticipates a total infrastructure capacity of over 895 MW once the site becomes operational.
In terms of construction and development, Hut 8 is set to provide a comprehensive range of services for the Cedarvale site. This includes design, engineering, financial modeling, budgeting, accounting, construction management, procurement, logistics, and coordination for proposal requests. The construction process is slated to commence in the upcoming weeks.
This announcement follows the recent turmoil in the crypto lending space, with Celsius being one of several firms that declared bankruptcy in 2022. The former CEO of Celsius, Alex Mashinsky, faced legal troubles in 2023, being arrested on charges of securities fraud, commodities fraud, and wire fraud.
The agreement with Celsius creditors aligns with Celsius’s bankruptcy court-approved transformation into a creditor-owned Bitcoin mining firm. This restructuring is part of a broader strategy to repay customers. Celsius’s post-bankruptcy mining operations are expected to be managed by US Bitcoin Corp (USBTC), which completed a merger with Hut 8 in November 2023. Prior to this, in August 2023, USBTC had secured a deal to host 8,500 miners for Celsius at its Alpha Site .
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
