The one-time controversial and now bankrupt Celsius Network had begun to build a large Bitcoin mining business. Today, Celsius’ approximately 120K Bitcoin mining rigs and data center assets may turn out to become the most valuable assets to emerge from the bankruptcy estate.
Yesterday, the Celsius Committee of Unsecured Creditors announced the selection of a sponsor and a proposed plan to allow creditors to maximize the value of their claims. As part of this plan, US Bitcoin, which announced a planned merger with Hut 8 (NASDAQ: HUT) (AP M&A Alert), will assume operating responsibility for Celsius’ mining operations under a five-year management agreement.
This news is notable as Celsius’ Bitcoin mining business is one of the larger operations based in the United States and is a material transaction for US Bitcoin / Hut 8. Second, it’s contemplated that the remaining assets and businesses in Celsius Network will become a publicly reporting entity and will be traded on a major global stock exchange. This will represent another public mining business eventually.