According to a will US Bitcoin Corp. (USBTC) to become one of the largest miners in the US by increasing its computing power by 12.2 exahashes/second (EH/s) after striking a deal to purchase mining assets from bankrupt lender Celsius, press release.
The miner is part of a consortium called Fahrenheit, which won a bankruptcy auction for the Celsius assets, which include a portfolio of loans, crypto assets and 121,800 mining machines. Once all the mining rigs are online, its fleet will be at least 270,000 mining rigs, the miner told CoinDesk. This puts its computing power in the ranks of mining giants like Riot Platforms (RIOT), Core Scientific (CORZ), and Marathon Digital Holdings (MARA).
As part of the Celsius deal, USBTC will enter into one or more operating and services agreements to be the “exclusive operator” of the Celsius mining fleet, the miner said. In addition, USBTC will receive a $15 million annual management fee on the mining assets, net of operating expenses, for the five years that it manages the rigs, the company added. That’s $75 million in addition to cost, assuming USBTC meets certain operational requirements.
Another $20 million in management fees will go to the Fahrenheit Consortium, court filings show. The consortium will also receive stock incentives for the new company that will house the Celsius assets. USBTC is also required to build 100 megawatts (MW) of infrastructure to house the Celsius rigs and provide a plan to expand an additional 240 MW of capacity at a site behind the meter.
The Miami-based company has managed to massively increase its operational capabilities in recent months while capitalizing on the opportunities presented by bankruptcies. It started with a single location in Niagara Falls, New York, but has now taken control of three locations formerly operated by Compute North, which filed for Chapter 11 in September 2022. Two of these are owned by energy investment firm Generate Capital, while the third is a joint venture between USBTC and energy company NextEra Energy.
USBTC has managed to secure hosting contracts for 150,000 machines at its facilities. It is also in a merger with Canada’s Hut 8 Mining (HUT).
Other members of the consortium that will manage the Celsius assets are Proof Group Capital Management, Steven Kokinos and Ravi Kaza.
UPDATE (May 25, 1:30 UTC): Changes the subheading to show the total potential management fees and states that USBTC will have at least 270,000 mining rigs after the deal.