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HomeMarket AnalysisHut 8 to manage mining operations for Celsius Network’s newly-created MiningCo

Hut 8 to manage mining operations for Celsius Network’s newly-created MiningCo

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Hut 8 to manage mining operations for Celsius Network’s newly-created MiningCo 1703867837024 b70c54b0 532e 41bd 9622 0ef570f86c05
  • Hut 8 says it will manage mining operations for MiningCo at five sites under a four-year contract.
  • The digital asset miner will oversee 122,000 miners with 12 EH/s of computing capacity and over 300 MW of energy.
  • The announcement follows the US bankruptcy court’s approval of Celsius Network’s reorganization plan.

Hut 8 Corp, a digital asset miner headquartered in Miami, Florida, will manage the mining operations of MiningCo, a newly created mining company approved by the US Bankruptcy Court for the Southern District of New York in view of the Celsius Network LLC reorganization plan.

The plan allows Celsius to transfer its mining operations to MiningCo. It’s part of Celsius Network’s bankruptcy proceedings.

Hut 8 to provide managed services under 4-year contract

As CoinJournal reported, US bankruptcy judge Martin Glenn approved the restructuring plan that allows Celsius Network to pivot its operations fully to Bitcoin mining.

In its announcement today, Hut 8 said the court’s approval of the reorganization plan the company had sponsored allows it to manage operations for MiningCo at five sites. Hut 8 will also oversee 122,000 miners with 12 EH/s of computing capacity and over 300 MW of energy.

As granted by the court, Hut 8 will manage MiningCo’s mining operations under a four-year managed services contract.

Commenting on the approval, Hut 8 president Asher Genoot said:

The mining plan that was presented to the creditors and the courts is strong and sound, and we look forward to proceeding with construction imminently at the Cedarvale, Texas site, and managing four additional sites once the process closes in the first quarter of 2024.”

Hut 8 will use the opportunity to grow its managed services business. The company also hopes to help build equity for Celsius’ creditors through MiningCo, Genoot added.

Apart from the four Texas locations at Rebel, East Isle, Style and Garden City (cumulatively having 87 MW), Hut 8 will also manage services at Cedarvale, Texas, MiningCo’s fifth site. 

Celsius struck a mining deal with US Bitcoin Corp in August, and selected the company which recently combibed its business with Hut 8 as the provider of end-to-end development services at Cedarvale.

Hut 8 will thus oversee the site’s design and development, which when completed, will have roughly 66,000 miners and offer more than 215 MW of energy. 





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