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Celsius to execute mining operations with Hut 8 despite bankruptcy proceedings



Hut 8 Corp. a leading digital asset mining and high-performance computing infrastructure provider, has entered into an interim agreement to develop and install mining operations at a site in Cedarvale, Texas, as part of the Celsius Network LLC bankruptcy proceedings. The ambitious project is set to accommodate around 66,000 miners, harnessing over 215 MW of energy upon completion.

Hut 8 is a prominent digital asset mining company that operates in North America. The firm is known for its significant experience and infrastructure in Bitcoin mining, positioning itself as a seasoned and successful miner in the industry. 

Hut 8’s operations span across various Canadian facilities, leveraging the country’s diverse energy sources and cool climates to support its high-performance data centers. The company’s focus on harnessing renewable energy and its commitment to innovation and growth in the digital asset ecosystem have contributed to its standing as a leading player in the crypto mining space. 

Celsius Network is a cryptocurrency lending company headquartered in Hoboken, New Jersey. The company filed for Chapter 11 bankruptcy in July 2022, and its operations were subsequently subject to legal and financial restructuring. 

Celsius Network allowed users to deposit various cryptocurrency digital assets, including Bitcoin and Ethereum. The company faced significant legal and regulatory challenges, including settlements with the Federal Trade Commission (FTC) and charges brought by the Securities and Exchange Commission (SEC). 

As part of the bankruptcy proceedings, a restructuring plan was approved, and a new company, NewCo, was established to partially repay customers through a combination of cryptocurrency and stock. 

The plan also involved the formation of a partnership with Hut 8, a Canadian Bitcoin mining firm, to develop a new mining site in Texas. The bankruptcy and legal issues surrounding Celsius Network led to a complex and evolving situation for the company and its stakeholders.

Asher Genoot, President of Hut 8, expressed confidence in the company’s managed services prowess, citing the management of 680 MW and a proven track record of efficiently establishing and optimizing mining infrastructure. 

Genoot outlined the dual objectives of building equity with Celsius creditors and strengthening the managed services business, projecting an impressive 895 MW of infrastructure under Hut 8’s management post-site launch.

According to the interim agreement with Celsius Mining LLC, Hut 8 will oversee the comprehensive development of the Cedarvale site, covering aspects such as site design, engineering, financial modeling, accounting, and logistics. Construction is slated to commence in the coming weeks, marking a significant milestone in Hut 8’s strategic expansion.

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