Hut 8, the Miami-based digital asset miner, has announced its role in managing mining operations for MiningCo, a new mining company given the green light by the US Bankruptcy Court for the Southern District of New York as part of Celsius Network LLC’s reorganization plan.
Under the four-year contract, Hut 8 will be in charge of operations at five sites. This entails overseeing a whopping 122,000 miners equipped with 12 EH/s of computing capacity and utilizing over 300 MW of energy. The approval from the US bankruptcy court signifies a pivotal moment for Celsius Network as it shifts its focus entirely to Bitcoin mining.
Hut 8’s Perspective
Hut 8’s President, Asher Genoot, expressed confidence in their mining plan, emphasizing its strength and soundness. He eagerly anticipates commencing construction at the Cedarvale, Texas site, with plans to manage four additional sites in the first quarter of 2024.
Growth and Equity
Beyond its Texas locations at Rebel, East Isle, Style, and Garden City (totaling 87 MW), Hut 8 will also oversee operations at MiningCo’s fifth site in Cedarvale, Texas. This opportunity is viewed as a means to expand their managed services business while simultaneously aiding in building equity for Celsius Network’s creditors through MiningCo.
The Cedarvale Project
Celsius Network had previously entered into a mining agreement with US Bitcoin Corp in August. Following the merger of US Bitcoin Corp with Hut 8, the latter was selected as the development services provider for Cedarvale. Hut 8’s responsibilities encompass designing and developing the site, which is expected to house approximately 66,000 miners and supply over 215 MW of energy upon completion.