By
Temitope Olatunji
April 26th, 2024
By acquiring all of Celsius mining equipment and infrastructure, Ionic Digital believes it can quickly reach its goal of total mining power of 12.7 exahash per second (EH/s) later this year.
Celsius, a company that deals with cryptocurrency lending, declared bankruptcy in 2022. However, its Bitcoin mining business is getting a second chance. The company is selling its mining assets to Ionic Digital, a company that wants to become a top Bitcoin miner in North America and go public.
Ionic Digital plans to restart Celsius’ self-mining capacity of 87 megawatts (MW) and the hosted mining capacity of 142 MW spread across different sites. The purchase also includes Celsius’ Cedarvale site, which is still being developed but is expected to support 240 MW.
By acquiring all of Celsius’ mining equipment and infrastructure, Ionic Digital believes it can quickly reach its goal of total mining power of 12.7 exahash per second (EH/s) later this year. Currently, the company mines Bitcoin at a rate of 6 EH/s. In commenting on the development, the company said:
“Our team is well-prepared to deal with the growing competition in mining, using our flexibility and strong financial backing to our advantage.”
To prepare for its expansion plans, they have filed Form 10 with the SEC, an important step towards going public. This follows the creditors of bankrupt Celsius becoming shareholders in Ionic Digital.
Ionic Digital is not alone in its pursuit of going public. Other bitcoin miners, like Swan Bitcoin, have also announced plans to go public within the next year. It is likely that more miners will follow their lead and file with the SEC.
Partnering with Hut 8 to Bolster Mining Operations
To strengthen its mining operations, Ionic Digital has formed a strategic partnership with Hut 8 Mining. Hut 8 will provide management services for its mining operations in exchange for an annual fee of $20 million.
As part of the deal, Hut 8 will also receive equity in Ionic Digital in the form of restricted stock and incentive shares. Matt Prusak, the former Chief Commercial Officer of Hut 8, will be the CEO of Ionic Digital, and Asher Genoot, the President of Hut 8, will join Ionic’s Board of Directors.
With the consolidation of Celsius’ mining assets under Ionic Digital and the addition of experienced industry veterans, the ambitious startup believes it can thrive even in the face of growing competition in the Bitcoin mining industry.
Ionic Digital highlights its adaptable leadership, strong financial support through its plans to go public, and its technical infrastructure as advantages over its rivals. The executive team and investors are confident in the potential of large-scale mining, especially with the upcoming Bitcoin halving event and the growth of the network.
As the race to increase mining capacity becomes more intense, Ionic Digital is an example of mining companies urgently expanding before the halving event changes the economics once again. By taking over from Celsius and becoming a publicly-listed mining leader, they have high hopes of becoming a major provider for the growing Bitcoin network.