In an advanced report dated December 18, the prominent Bitcoin miner in Canada Hut 8 signed an interim agreement with Celsius creditors to establish a new mining site in Cedarvale, Texas. The bankrupt crypto lender Celsius Network has sought to attain its restructuring plans for the past few months.
Last month, a court in the US approved Celsius’s restructuring plan that will allow the now-defunct crypto lender to recover the customers’ funds by establishing a new entity. Based on the restructuring plan, the Celsius team envisioned that from January 2024, the affected customers would receive their funds.
Celsius Creditors Selects Hut 8 to Establish New Mining Site
The restructuring plan demonstrated that the embattled crypto lender planned to create a Bitcoin mining entity that Celsius creditors would have partially own. Earlier the Celsius mandated the US Bitcoin Corp (USBTC) to manage the new mining site.
After a lengthy court process that resulted in the approval of Celsius restructuring plans, the troubled crypto lender has selected Hut 8 as its preferred partner to build a new mining site. Hut 8 boasts of being amongst the largest Bitcoin Miners in North America.
Besides being ranked among the fast-paced Bitcoin miners, the company is listed under the Nasdaq under the ticker symbol TSX: HUT. A review of the interim agreement demonstrated that the Hut 8 team would collaborate with the Celsius creditors to build the Cedarvale-based mining facility.
According to the report, the Hut 8 team confirmed that the new mining site will be home for 66000 miners. The mining company confirmed the Cedarvale-based mining site will generate 215 megawatts (MW).
A statement from the president of Hut 8, Asher Genoot, revealed that the company oversees the operation of business generating 680 MW. The executive admitted that selecting Hut 8 as Celsius’ preferred partner was the best decision since the Bitcoin miner has a track record in developing high-performance computing tools.
Genoot argued that through the collaboration with the Celsius creditors, the Bitcoin miners would support the company in growing its equity.
Scope of Celsius Network Restructuring Plan
Consecutively, the executive admitted that the collaboration with Celsius will support the Bitcoin miners in increasing their vitality in managing businesses. Through the partnership, the Hut 8 team forecasts that the Bitcoin miners will have 895 MW businesses under management.
The report demonstrated that the Bitcoin miner will offer the Celsius team end-to-end development services to the new mining site. The two companies agreed to start constructing the new mining site soon.
Hut 8 and Celsius Mining LLC plan to offer distinctive solutions in site design, finance, logistics, accounts, and engineering.
