Hut 8 will manage mining operations for Celsius’ newly formed MiningCo
- Hut 8 has announced that it will manage mining operations at five sites for MiningCo under a four-year contract.
- The digital asset miner will oversee 122,000 miners with a computing capacity of 12 EH/s and over 300 MW of energy.
- The announcement comes after the US bankruptcy court approved Celsius Network’s restructuring plan.
The plan allows Celsius to transfer its mining operations to MiningCo. This is part of Celsius Network’s bankruptcy proceedings.
Hut 8 will provide managed services under 4-year contract
As CoinJournal reported, US bankruptcy judge Martin Glenn approved Celsius Network’s restructuring plan that will allow it to reorient its operations entirely towards Bitcoin mining.
Hut 8 said in today’s announcement that court approval of the company-sponsored restructuring plan allows MiningCo to manage its operations at five sites. Hut 8 will also oversee 122,000 miners with a computing capacity of 12 EH/s and over 300 MW of energy.
That’s exactly it
Our reorganization plan filed in the Celsius Network LLC bankruptcy case has been approved. This means providing end-to-end managed services for five facilities in Texas, overseeing ~12 EH/s of compute capacity (122,000 miners) and over 300 MW of energy.
To read…
— Hut 8 (@Hut8Mining) December 29, 2023
Under the court’s decision, Hut 8 will manage MiningCo’s mining operations under a four-year managed services agreement.
Commenting on the approval, Hut 8 president Asher Genoot said:
“The mining plan presented to creditors and the courts is strong and robust, and we look forward to promptly resuming construction on the Cedarvale, Texas site and managing four additional sites once the process concludes in the first quarter of 2024..”
Hut 8 will use the opportunity to grow its managed services business. Genoot added that the company also hopes to help raise equity capital for Celsius’ creditors through MiningCo.
Hut 8 will manage services at four Texas locations in Rebel, East Isle, Style and Garden City (totaling 87 MW), as well as MiningCo’s fifth facility, Cedarvale, Texas.
Celsius struck a mining deal with US Bitcoin Corp in August and recently tapped the company, which merged its business with Hut 8, as its end-to-end development services provider in Cedarvale.
Hut 8 will thus oversee the design and development of the facility, which will accommodate approximately 66,000 miners and deliver more than 215 MW of energy when completed.
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