In a significant move within the cryptocurrency sector, Hut 8, a prominent Canadian Bitcoin mining firm, has announced an interim agreement to establish a new mining site in Cedarvale, Texas. This development follows the Celsius Network bankruptcy proceedings, marking a strategic pivot for both entities involved.
Hut 8 is expanding its operations in the midst of crypto market volatility. The Cedarvale site will become a major hub for Bitcoin mining, with Hut 8 deploying approximately 66,000 miners and powering them with over 215 megawatts of energy. This expansion will bring its total infrastructure to 895 MW, a major milestone for the company. Hut 8 will manage all aspects of the site, from design and engineering to financial modelling and construction management.
Celsius Network is also involved in the project as part of its restructuring plan. This is the result of its bankruptcy declaration in July 2022, which followed the arrest of its former CEO, Alex Mashinsky, on multiple fraud charges. The firm received bankruptcy court approval to transform into a creditor-owned Bitcoin mining firm, allowing it to repay customers and stabilize the company. As part of the post-bankruptcy plan, US Bitcoin Corp (USBTC) merged with Hut 8 in November 2023. This followed an agreement in August 2023, where USBTC agreed to host 8,500 miners for Celsius at its Alpha Site.
