Source: Pixabay
Digital asset mining firm Hut 8 signed an interim agreement to build out and install crypto-mining facilities in collaboration with Celsius Network.
In a Dec 18 press release, the Bitcoin miner signed the agreement linked to Celsius bankruptcy proceedings which will see the firm build out the Cedarvale site in Texas.
According to the document, the company’s site will host over 66,000 miners and will be powered by over 215 MW of energy with plans to boost its local production capacity in the wake of rising asset prices.
The miners will provide technical and skilled developmental services for the center set to begin construction next week to bring the agreement to a reality. The end-to-end development services include financial modeling, construction management, procurement, logistics, budgeting, and RFP coordination.
Furthermore, Asher Genoot, the President of Hut 8 explained the goals of the agreement in twofold to boost the operations of both companies. On one hand, the miners seek to build equity with Celsius with the pending bankruptcy case and new investors in search of new capital.
Secondly, Hut 8 seeks to push the growing strength of local businesses increasing capacity to 895 MW of energy once the miners are unveiled.
Hut 8 eyes growth
According to several commentators, the agreement is set to benefit and scale up the operations of both firms because on the one hand Celsius in the middle of bankruptcy proceedings needs fresh capital for new ventures it may embark upon while Hut 8 needs the growth to raise its position in the mining sector.
At the moment, the Canadian-based Bitcoin miner has 680 MV of energy in current mining locations in North America and will grow that number with this deal.
“We believe that the strength of Hut 8’s managed services business with 680 MW currently under management, coupled with our track record of swiftly standing up mining infrastructure and efficiently running and optimizing operations, were key factors in being chosen as the partners for this project.”
Digital asset miners have their eyes set on the upcoming halving billed to take effect next year with miners positioning themselves to be most efficient and profitable as asset prices rise.
Bitcoin Hash Rate Taps All-Time High Ahead of Next Year’s Halving
Bitcoin’s hash rate is at an all-time high, a few months away from the next halving, with bulls anticipating another run to wipe out the bear market losses.#CryptoNews #newshttps://t.co/v8dB432PqB
— Cryptonews.com (@cryptonews) November 23, 2023
In the past months, miners were among the biggest losers of the crypto winter as reduced asset prices placed operations in losses forcing many to sell Bitcoin reserves, sell mining equipment, or pivot to Artificial Intelligence (AI) computing.
With the price of Bitcoin above $40,000, miners are in pole position to consolidate gains and expand capacity and efficiency before the next halving.
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