Celsius Network newly created Mining Co to manage mining operations Hut 8
Hut 8 said it will manage mining operations at five sites for MiningCo under a four-year contract. The digital asset miner manages 122,000 mines with 12 EH/s computing capacity and over 300MW of power. This announcement follows the US Bankruptcy Court's approval of Celsius Networks' reorganization plan.
Hut 8 Corp, a digital asset miner headquartered in Miami, Florida, will take over the mining operations of Mining Co., a newly formed mining company, as part of Celsius Network LLC's reorganization plan approved by the US Bankruptcy Court in the Southern District of New York.
The plan allows Celsius to transfer its mining operations to MiningCo. Celsius Network is part of bankruptcy proceedings.
Hut 8 to provide managed services under a 4-year contract
According to CoinJournal , US Bankruptcy Judge Martin Glenn has approved a restructuring plan that will allow the Celicius Network to fully divest its operations to bitcoin mining.
In a statement today, Hat 8 said the court approved the company-sponsored restructuring plan that would allow it to manage mining operations at five sites. Hut 8 also controls 122,000 miners with 12 EH/s computing capacity and over 300 MW of power.
This has been approved by 📰➡️ our reorganization plan filed in the bankruptcy proceedings of Celsius Networks LLC. This means providing end-to-end managed services for five sites in Texas, handling ~12 EH/s computing capacity (122,000 miners) and over 300MW of power.
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— Hut 8 (@Hut8Mining) December 29, 2023
According to the court, Hut 8 Mining Commune will manage the mining operations under a four-year service contract.
Hut 8 President Asher Jeannott commented on the approval:
“The mining plan presented to creditors and courts is strong and sound and we look forward to continuing construction on the Cedarvale, Texas site soon and operating four additional sites once the process is complete in the first quarter of 2024.”
Hut 8 will use the opportunity to grow its managed services business. Gennot added that the company hopes Celsius' lenders will help build equity through Maningco.
From its four Texas sites in Rebel, East Isles, Steele and Paradise City (with a total of 87 MW), Hut 8 operates services at MiningCo's fifth site in Cedarvale, Texas.
Celsius Mining struck a deal with US Bitcoin Corp in August, and has chosen the company, which recently merged with Hat8, as its end-to-end development service provider in Cedarvale.
Hut 8 will therefore oversee the design and development of the site, which when completed will house approximately 66,000 miners and provide more than 215 megawatts of power.
