SNEAK PEEK
- USBTC’s partnership with Celsius Network promises to redefine cryptocurrency mining.
- Celsius Network stands to benefit from USBTC’s strategic leadership.
- The Fahrenheit coalition brings collective experience in optimizing web3 assets.
US Bitcoin Corp (“USBTC”), a premier operator of Bitcoin mining sites, has been appointed to oversee the mining operations of the recently restructured Celsius Network LLC. This new partnership promises to redefine the landscape of cryptocurrency mining, fusing the expertise of a seasoned Bitcoin company with Celsius Network’s well-established infrastructure.
According to reports, USBTC announced an all-stock merger of equals with Hut 8 Mining Corp., a leading cryptocurrency mining company, on Feb 7, 2023. USBTC further announced it had emerged victorious from multiple bidding rounds in a competitive auction to manage the restructured mining division of Celsius Network LLC.
The winning bid was put forth as part of the Fahrenheit, LLC coalition, a power-packed assembly of crypto industry pioneers. These include USBTC, Arrington Capital, Proof Group Capital Management, Steven Kokinos, and Ravi Kaza.
With this new alliance, the restructuring process will see Fahrenheit manage the broader Celsius entity, with USBTC serving as the exclusive operator of all mining assets formerly owned by Celsius. In recognition of their responsibilities, Fahrenheit will receive an annual management fee of $20 million over a five-year agreement.
Moreover, USBTC stands to gain a significant portion of the management fee under the proposed restructuring. After deducting operating expenses, it will also receive an annual fee of $15 million from Fahrenheit for supervising the mining division of the newly restructured company.
Due to this restructuring, USBTC projects a significant uptick in its total installed hash rate under management. This is expected to boost around 12.2 EH/s once the extensive Celsius fleet of 121,800 machines is fully energized.
