Bitcoin Miner Hut 8 Develops Mining Facility for Bankrupt Celsius in Texas
Bitcoin (BTC) miner Hut 8 announced in a statement on December 18 that it has entered into a tentative agreement to build and install a mining operation for bankrupt cryptocurrency lender Celsius in Cedarvale, Texas. He said he did.
The proposed mining site will be home to approximately 66,000 miners and powered by more than 215 megawatts (MW) of energy.
Under the agreement, construction on site is expected to begin within a few weeks. Hut 8 will provide end-to-end development services, including design, engineering, financial modeling, budgeting, accounting, construction management, procurement and logistics.
Hut 8 president Asher Genoot said the company’s goals were “two-fold.”
“(The first) is to build equity with Chelsea’s creditors, while also growing the strength and vitality of our management services business. Once the site is operational, we expect to have more than 895MW of infrastructure under our umbrella.”
Meanwhile, the news had no impact on Hut 8’s stock price, which was down about 1% pre-market to $10.40 at press time, according to Yahoo Finance data.
Hut 8 is a Bitcoin mining company newly launched through the merger of Hut 8 Mining Corp., a North American Bitcoin mining company, and US Bitcoin Corp (USBTC).
The Bankruptcy of Celsius
Celsius was one of a number of cryptocurrency lending companies, including Genesis, BlockFi, and others, to capitulate last year due to poor risk management frameworks and reckless trading.
Since its bankruptcy, several regulators across several states in the U.S. have filed lawsuits against the company.
The Federal Trade Commission (FTC) later reached a record $4.7 billion settlement with Celsius. Regulators also permanently banned the company from offering products or services that could be used to deposit, exchange, invest or withdraw assets.
Additionally, other US federal agencies, such as the Securities and Exchange Commission (SEC), have taken legal action against the company’s CEO, Alex Mashinsky.
But the lender’s insolvency proceedings are gradually coming to an end, with the launch of withdrawals for eligible custodial users last month. CryptoSlate Several users of the defunct company reported complaining about slow processes.
