Hut 8 signs four-year contract to manage Chelsea Bitcoin mining operations Ionic Digital

Hut 8 has formalized a comprehensive four-year partnership with Ionic Digital Inc. to provide end-to-end managed services across Ionic’s Bitcoin mining operations.

The move was announced on February 1, and marks a significant development for Ionic, a mining-focused company that recently emerged from Chelsea’s Chapter 11 bankruptcy. Ionic will be led by Matt Prusak, former CCO at Hut 8.

Hut 8 will be responsible for maintaining and expanding Ionic’s four existing sites in Midland, Texas, and will also be responsible for the development and operation of Ionic’s Cedarvale site, according to the statement. Additionally, Hut 8 will host 8,500 Ionic miners at its Niagara Falls, New York facility.

Hut 8 CEO Jaime Leverton said Hut 8 had been designing and building the Cedarvale site since December. He added:

“Our managed services offering sets us apart within the industry and ultimately sets Hut 8 apart as the best partner to manage Chelsea’s mining operations with Ionic Digital,” Leverton said.

Once the Cedarvale site is complete, Hut 8 will boast a nameplate hashrate of 12EH/s and will oversee an impressive 127,000 miners supported by a robust 300MW energy infrastructure in the first year of a managed services agreement.

Hut 8 expects to have a positive and material financial impact on its management services. The company said it expects the transaction to generate total cash proceeds of $81.5 million over four years. If key milestones are met, potential revenue could exceed $100 million and the contract could potentially be extended to a five-year term.

In addition, it was announced that it would receive equity compensation from Ionic during the period.

Hut 8 further disclosed that it had acquired a stake in Ionic. The BTC miner acquired 374,261 shares worth $6.4 million in cash, with another acquisition scheduled before May 31. This investment will give Ionic Digital two board seats, one of which will be Asher Genoot, President of Hut 8.

Celsius emerges from bankruptcy.

Defunct cryptocurrency lender Celsius announced plans to emerge from bankruptcy on January 31 and distribute more than $3 billion to creditors.

The company said it would use payment company PayPal and cryptocurrency exchange Coinbase to distribute cryptocurrency to creditors. It added that mobile and web applications will be shut down by February 28.

“Due to the volume of distribution and security measures, it may take up to two weeks for debtors to send all instructions. “I know you all have been waiting for a long time, but please be patient.” said.