Towards a Celsius 2.0 powered by bitcoin (BTC) mining?

There storm Terra has heavily affected the price of bitcoin and several crypto projects like Celsius Network. In July 2022, the crypto lender formerly led by Alex Mashinsky declared bankruptcy, with its balance sheet weighed down by more than 4.7 billion in debt towards its users. But the Celsius team held on during these difficult times. Recently, the bankruptcy court gave its green light for the execution of the financial restructuring plan of this crypto company. And to top it all off, Celsius has acquired a bitcoin mining site in Texas.

In short

  • Celsius Network Acquired Texas Bitcoin Mining Site From Core Scientific for $14 Million
  • Celsius and Core also resolve a long-standing dispute

Celsius Network acquires bitcoin mining site in Texas

It’s been more than a year since Celsius Network filed for Chapter 11 bankruptcy protection. 14 months is enough to have the “Plan” for the administration of this cryptocurrency lender validated by the Court of bankruptcies in the United States.

THE Celsius customer refunds begin isn’t far away, apparently.

β€œ Celsius Network and Core Scientific have reached an agreement. In exchange, Core will sell the Caverdale site to Celsius and waive all of Core’s claims against Celisus. Β»

According to Crypto News, Core Scientific sold Texas-based BTC mining site to Celsius Network. The cost of this infrastructure amounts to $14 million.

According to the court filing, Celsius’ newly acquired bitcoin mining site is located in Cedarvale, Ward County, Texas. Although equipped witha power of 215 megawatts, this mining facility will not be able to immediately bring bitcoins to Celsius. The latter must first do some technical work before collecting BTC.

The Texas bitcoin mining site is β€œ partially developed and not operational “. Now that Celsius Network, issuer of the CEL, has the design plans for the site at hand, it will be able to complete its construction in a short time.

Said document also described this BTC mining site as β€œ key component of Celsius’ revamped mining business as part of its plan “.

Celsius and Core, separated and reconciled by bitcoin mining

Between the cryptocurrency lender Celsius and the bitcoin mining specialist Core Scientific, things have not been going very well for some time. The financial difficulties experienced by Celsius Network did not allow it to pay its royalties and electricity bills for the 37,000 hosted bitcoin platforms by Core.

However, we are aware that Core Scientific has also experienced cash flow problems. In July, a $10 billion financial hole was observed.

So, at the beginning of the year, Core Scientific had to declare bankruptcy. And yet he is rich in 130,000 bitcoin mining machines, which would give him 50 BTC per day.

Under such circumstances, Core had no choice but to break away from its insolvent tenant Celsius Network.

By acquiring this bitcoin mining site, Celsius Network is granted several advantages. To cite only the Core Scientific waives debts worth $31 million.

Adam Sullivan, CEO of Core Scientific, says he is pleased with this new agreement with Celsius. It will certainly facilitate the resolution of β€œ all existing disputes “.

At this stage, can we dream of a Celsius 2.0? Will bitcoiners see the rebirth of Celsius Network as a new impetus for the crypto industry? The FTX 2.0 case taught us that opinions differ regarding the possible resurrection of a fallen crypto project.

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