Hut 8 (NASDAQ: HUT), the Canadian BTC block reward miner, has been selected to build a 215 megawatts mining site by the Celsius Network bankruptcy proceedings.
This week, the two entities revealed that they had signed an interim agreement to build the mining operation in Cedarvale, Texas. It will host 66,000 mining units and be powered by over 215MW of energy.
🗞️ Good morning! Hut 8 has been selected by Celsius debtors to build out a facility in Cedarvale, Texas, which will include 66,000 miners at the 215 MW site https://t.co/GD9ZQHODlO.
— Hut 8 (@Hut8Mining) December 18, 2023
Celsius applied for Chapter 11 bankruptcy protection in July 2022, with founder Alex Mashinsky’s mismanagement among the key factors cited for the collapse. It has been working toward a resolution that returns some of the funds to its clients at a New York bankruptcy court. In November, the firm unveiled its reorganization plan, focusing exclusively on BTC mining plans, aiming to unlock $2 billion in investors’ assets. It awaits approval from the court and other relevant authorities.
Hut 8 will be at the heart of the reorganization plan, providing end-to-end development services for the Texas site. This includes design, engineering, accounting, financial modeling, and construction management. It expects to begin the project “in the coming weeks.”
Hut 8 President Asher Genoot believes that the company’s track record of swift construction and deployment of mining sites played a big part in its selection. The company also boasts a robust managed services business with 680MW under its management.
“Our goal is twofold: to build equity with creditors of Celsius while also growing the strength and vitality of our managed services business, which we anticipate will have more than 895 MW of infrastructure under our umbrella once the site is up and running,” added Genoot, who took over the role this month.
While Hut 8 has been selected to spearhead the project, the deal isn’t valid until the reorganization plan Celsius unveiled in November gets the go-ahead from the bankruptcy court and other regulators.
Hut 8 announced plans to merge with U.S. Bitcoin Corp earlier this year as it sought to weather the ‘crypto winter.’ A Canadian court approved the plan in September, with the companies merging on November 30.
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