Hut8 and Celsius partner up
Hut8, a U.S. NASDAQ-listed cryptocurrency mining company, announced on the 18th that it has signed a tentative agreement to build a new cryptocurrency mining facility in cooperation with cryptocurrency lending company Celsius Network.
Once completed, the facility, scheduled to open in Texas, is expected to house approximately 66,000 mining machines and provide 215 megawatts (MW) of electricity. Construction is expected to begin within the next few weeks.
Hut 8 President Asher Genuto explained:
Our goals are twofold. One is to build credibility with Celsius’ creditors. The other is to strengthen our management services. Once completed and operational, the new facility will have an infrastructure capacity of over 895 megawatts (MW).
Regarding the scale of electricity, large thermal power plants are generally said to supply several hundred megawatts to several thousand megawatts of electricity.
Celsius filed for Chapter 11 bankruptcy in the United States in July 2022, and is currently undergoing procedures for corporate restructuring. It also has a virtual currency mining business under its umbrella.
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What is Chapter 11 of the US Federal Bankruptcy Code?
A restructuring-type bankruptcy law system similar to Japan’s civil rehabilitation law. The company will rebuild the company by reducing debt while continuing to operate the company. After filing the application, debt collection will be suspended, and the debtor will work to sort out their debts and, in principle, formulate a restructuring plan within 120 days.
▶️Virtual currency glossary
Celsius, which is undergoing bankruptcy proceedings, needs capital to start new ventures, and Hut8 needs expansion to establish itself in the mining industry. Based on this, it is believed that this agreement will bring benefits to both companies.
In October, Hut8 also announced that it was continuing its “HODL (hold it on hand) strategy” with the possibility that the scarcity of Bitcoin (BTC) would be maintained due to the halving. is.
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Cipher Mining also expands its machines
Cipher Mining, a Bitcoin mining company listed on Nasdaq, announced on the 18th that it plans to purchase 37,396 units of the latest generation mining machine “Antminer T21” from major mining equipment manufacturer Bitmain.
These are scheduled to be delivered in the first half of 2025, and once operational, the company’s self-mining capacity will reach 7.1 EH/s (exahash/second). The new machines will be deployed as part of the initial run at a new facility in Black Pearl, Texas.
In addition to this, Cipher also purchased an option to acquire 45,706 mining machines equivalent to 8.7 EH/s in 2024.
Cipher CEO Tyler Page said Cipher’s custom software, attractive pricing for the ERCOT power grid in Texas, and the efficiency of the T21 machine will help maximize profits at the Black Pearl facility. ing.
He also continued that by making mining machines available for purchase at favorable prices through purchase options, the company has laid the groundwork for future large-scale facility expansion.
As the virtual currency mining industry is expected to be reorganized due to the halving, many companies are expanding their facilities one after another. Australia’s Iris Energy and US Riot have also placed additional orders for mining machines.
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