Hut 8 Mining to Develop New Site in Texas amid Celsius Bankruptcy

Hut 8 Mining to Develop New Site in Texas amid Celsius Bankruptcy

By: Isha Das

As a part of an interim agreement, Canadian Bitcoin mining corporation, Hut 8, is to develop a new mining site in Cedarvale, Texas. This development is related to the ongoing bankruptcy proceedings of the Celsius Network, a once-popular crypto lender that faced capitulation last year. The site is expected to house close to 66,000 miners and utilize more than 215 megawatts of energy to power its operations.

Hut 8's president, Asher Genoot, highlighted a twofold goal behind this agreement: it is meant to build equity with Celsius' creditors while also boosting the strength of Hut 8's managed services business. Upon completion, Hut 8 expects to have over 895 megawatts of infrastructure in operation.

The infamous Celsius bankruptcy has seen the firm ousted from offering any products or services related to depositing, exchanging, investing or withdrawing any assets, as a part of a hefty $4.7 billion settlement with the Federal Trade Commission. The lender also faced legal action from other U.S. federal agencies like the Securities and Exchange Commission. However, progress in the bankruptcy process has seen Celsius open withdrawals for qualifying custody users.

Despite the significant development, Hut 8's shares saw a marginal decrease by around 1%, according to Yahoo Finance data.

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