Celsius Network invests another $ 300 million in Bitcoin mining

Celsius Network has invested an additional $ 300 million in Bitcoin mining. CEO Alex Mashinsky said in an interview that the investment goal is to increase the hashrate and its proprietary bitcoin mining capacity in North America.

“That is our commitment for this year and next – with a capacity expansion by the end of next year. Hashrate growth is expected to collapse in the coming months. “

The latest move follows a $ 200 million investment earlier this year, the Celsius Spending on retrofitting Bitcoin miners as well as investing in other mining companies such as Core Scientific, Rhodium Enterprises, and the Luxor Technologies mining pool. Core Scientific is working on a merger agreement for a public listing, while Rhodium has filed for an initial public offering (IPO) in the US with a $ 100 million wildcard.

This investment helps the lending platform become one of the most important bitcoin miners in North America.

According to Mashinsky, Celsius currently has an active Bitcoin mining fleet of around 22,000 ASIC miners, most of which are Bitmain’s latest generation AntMiner S19. The company announced earlier this month that it was bidding for Bitmain’s newest AntMiner S19XP, which has 140 terahashes per second (TH / s) of processing power.

Celsius has increased investment to take advantage of the opportunities created by China’s crackdown on the mining sector.

“A lot of people buy equipment, they think there is no competition, but now there are obviously a lot more parties involved, more players, so you have to be really good at this business.”

What’s unique about Celsius is that the company will mine Bitcoin itself as part of its existing lending business. They lend bitcoin to institutions to earn interest and pay interest on bitcoin to depositing customers.

Celsius entered the mining sector in 2020, providing blockchain loans and equipment rentals to miners like Core Scientific and Argo.

Last month, Celsius announced it raised $ 400 million in a round of funding led by growth capital firm WestCap, bringing its valuation to $ 3 billion.

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Annie

According to The Block

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