Celsius Invests $200 Million in North American Bitcoin Mining
- Celsius will invested in equipment and positions in three large North American Bitcoin mining companies.
- The $200 million investment will make it the largest investors in the Bitcoin mining industry in the U.S.
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According to a press release published on 4 June, Celsius has invested over $200 million in mining equipment and positions in three North American Bitcoin mining companies—Core Scientific, Rhodium Enterprises, and Luxor Technologies. Core Scientific is a customizable infrastructure and software solution provider for blockchain networks, Rhodium Enterprises is a Texas-based mining firm, while Luxor Technologies is a hash rate-based software company.
Alex Mashinsky, the CEO of Celsius, said that the company considers Bitcoin as the flagship cryptocurrency that sets the course for the entire crypto industry. That is why Celsius plans on vitalizing the Bitcoin mining industry in North America through the use of renewable sources, he explained in the release.
Celsius is one of the fastest-growing lending and borrowing platforms in the industry. Last month, the company revealed that it took only 100 days to more than triple its cryptocurrency assets under management. On 3 June, the company announced that it held over 100,000 BTC, adding that the cryptocurrency accounted for about 25% of its total community assets.
- The bankrupt crypto lender said that if its reorganization plan is approved, it is ready to start repaying its customers using $2 billion in BTC and ETH by the end of the year.
- If given the green light, Celsius will restart its business under the “NewCo” brand without any funded debt, and with seed funding of up to $450 million.
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- The bankrupt crypto lender has agreed on a settlement with its Series B holders on how to distribute the $25 million from the sale of self-custody platform GK8.
- The majority of funds, $24 million, will be allocated for legal expenses, while the remaining $1 million will be distributed between the Series B holders.
- The U.S. SEC, CFTC, and FTC have all filed separate lawsuits against bankrupt crypto lender Celsius and its former CEO Alex Mashinsky, charging them with multiple counts of fraud.
- Mashinsky was also arrested in New York on Thursday, and later charged by the Department of Justice with securities fraud, commodities fraud, and wire fraud.