US Bitcoin Corp. is planning to become one of the biggest miners in the U.S. after a deal was made to purchase mining assets from bankrupt lender Celsius.

The miner was part of the consortium Fahrenheit that won an auction to buy Celsius assets. These assets included a lending portfolio and crypto assets as well as 121,800 machines for mining. The miner said that once it has brought all of its mining rigs on line, the fleet will have at least 270,000 mining machines. It will be able to compete with mining giants like Core Scientific (CORZ), Riot Platforms and Marathon Digital Holdings.

Fahrenheit wins bid to acquire assets of insolvent crypto lender Celsius

The miner stated that under the Celsius agreement, USBTC would enter into one or several operating and service agreements in order to be “exclusive operator” for the Celsius mining fleet. The firm also said that USBTC would receive an annual management fee of $15 million for the mining assets. This is net of the operating expenses. This is $75 million in addition to expenses, if USBTC meets certain operational requirements.

Court filings show that another $20 million will be paid to Fahrenheit as management fees. The consortium will receive stock incentives for the new company which will house the Celsius assets. USBTC must also build 100 megawatts of infrastructure for Celsius rigs and submit a plan to add another 240MW to a Behind-the-meter Site.

Miami-based company has been able to increase its operational capability in recent months by taking advantage of bankruptcy opportunities. The Miami-based firm started with a single Niagara Falls site, but now controls three other sites that were operated by Compute North , which filed for Chapter 11 bankruptcy in September 2022. Two of them are owned by the energy investment firm Generate Capital. The third is a joint-venture between USBTC, NextEra Energy and Energy firm NextEra.

USBTC has secured hosting deals for 150.000 machines at its facilities. The company is also merging with Canada’s Hut 8 Mining.

The consortium will also include Proof Group Capital Management Steven Kokinos and Ravi Kaza.

Bitcoin Corp. to Host 150K Crypto Mining Rigs Bitcoin Corp. to host 150K crypto mining rigs

Aoyon A. Ashraf is the editor.

UPDATE: Updated subheading to include total management fees and specify that USBTC has at least 270,00 mining rigs following the deal.