In relation to the Celsius Network bankruptcy proceedings, the Canadian Bitcoin mining company Hut 8 has inked a provisional deal to open a new mining facility in Cedarvale, Texas.Hut 8 revealed the news on December 18 and stated that the mining operation will employ about 66,000 people and require more than 215 megawatts (MW) of energy.According to Asher Genoot, president of Hut 8, the arrangement aims to accomplish two objectives: it will increase the managed services company’s strength and foster equity among Celsius’s creditors.“We anticipate having more than 895 MW of infrastructure under our umbrella once the site is up and running,” the CEO stated.
Hut 8 will offer complete development services for the Cedarvale site in accordance with the interim agreement with Celsius.Hut 8 is anticipated to offer services including design, engineering, financial modeling, budgeting, accounting, construction management, procurement, logistics, and request for proposal coordination when development gets underway in the upcoming weeks.After filing for bankruptcy in July of 2022, Celsius was one of numerous cryptocurrency lenders that failed.Charges of securities fraud, commodities fraud, and wire fraud led to the arrest of Alex Mashinsky, the company’s former CEO, in July 2023.
Hut 8’s deal with Celsius debtors was reached not long after Celsius secured clearance from a bankruptcy court for its proposal to compensate consumers, which included a change to become a creditor-owned Bitcoin mining company.US Bitcoin Corp (USBTC), which successfully merged with Hut 8 in November 2023, was purportedly assigned to oversee Celsius’s mining operations upon bankruptcy.Additionally, in August 2023, USBTC and Celsius reached an agreement for the hosting of 8,500 miners at USBTC’s Alpha Site.