Key points to remember:
- Celsius’ $ 300 million allocation brings the company’s total investment in Bitcoin mining to over $ 500 million
- North America’s crypto mining industry has been booming since China effectively eradicated its hashing capabilities in a series of crackdowns
- BTC miners can stake their hashrate to get Celsius BTC loans
Celsius Network, a centralized provider of cryptocurrency lending, announced a $ 300 million investment in Bitcoin mining equipment (BTC) and related services. With more than $ 200 million invested in BTC mining facilities in North America (NA) earlier this year, Celsius has now allocated more than $ 500 million to supplement its lending activities with a Bitcoin mining company.
Celsius capitalizes on BTC mining boom in North America
Speaking to The Block, Celsius CEO Alex Mashinsky told the crypto outlet that the company will use the newly allocated funds to expand its hash rate production in NA over the coming months. The CEO noted that the company currently owns around 22,000 BTC ASIC miners and plans to purchase the latest AntiMiner S19XP models from Bitmain with a throughput of 140 terahashes per second (TH / s).
Investment in North American BTC mining infrastructure has accelerated dramatically following China’s crackdown on crypto mining and the cryptocurrency industry in general, and Celsius is riding the wave of ‘a new trend.
In the months following a series of crackdowns on the mining industry, China’s hash rate output fell to zero, according to data collected by the Cambridge Bitcoin Electricity Consumption Index (CBECI). According to analysis firm Blockchain.com, although the former mining superpower is entirely out of sight, total hash rate output has recovered near its all-time high in record time.
Miners looking for a new home in large numbers chose the United States as their preferred destination due to easy access to cheap energy and most importantly the ability to choose from a myriad of renewable energy sources. . At the end of August 2021, the average monthly hashrate share of U.S. miners rose to 35.4%, up more than 100% since the start of the year.
Mashinsky is aware that competition is getting tougher in the crowded NA market, which is why Celsius is making investments that will strengthen its position as a leader in crypto mining. “A lot of people who buy machines think the competition just won’t be there, but obviously there are now a lot more participants, more players, so you have to really be good at it,” said the CEO of Celsius. elaborated.
In addition to running a traditional mining operation, Celsius also provides access to Bitcoin loans in exchange for hashing power. Mashinsky went on to explain:
“We take care of the miners who don’t want to sell their bitcoin and we lend them against their bitcoin or their hash power so they can send us bitcoins. [as collateral] when they exploit it.
Celsius’ core business of crypto lending grew tremendously after its inception in 2017. As of November 12, the company had processed $ 8.2 in loans, controlled over $ 28.6 billion in community assets by over one million users. Celsius announced that it had raised more than $ 400 million in its most recent funding round in mid-October, which represents a valuation of $ 3 billion.
David is a crypto enthusiast and a personal finance expert. He has created numerous publications for different platforms. He loves exploring new things, and that’s how he discovered blockchain in the first place.
