Home News Celsius Network will allocate an additional $300M for Bitcoin mining

Celsius Network will allocate an additional $300M for Bitcoin mining

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Celsius Network will invest $300 million in addition to the previously announced $200 million in Bitcoin (BTC) mining in the United States. Alex Mashinsky, CEO of the cryptocurrency lending platform, said this in an interview with The Block.

Mashinsky said that they are planning to constantly increase the hashrate until the end of next year. According to him, the growth rate of the company’s computing capacity will slow down in the coming months.

In addition to buying equipment for mining cryptocurrencies, Celsius Network invests in the American blockchain hosting provider Core Scientific; the mining company Rhodium Enterprises from Texas; and the Luxor Technologies pool.

Supporting Core Scientific and Argo Blockchain in the form of loans

According to the CEO of the platform, at the moment Celsius Network has 22,000 ASIC devices. Moreover, there is mainly AntMiner S19 from Bitmain.

Earlier, the company announced the order of the latest S19 XP with a hashrate of 140 TH/s, announced by the manufacturer in Dubai. Celsius Network intends to use mined Bitcoins in its core business. As of early November, the firm’s assets were estimated at $28.6 billion.

The direction of mining interested the management of the platform in 2020. Since then, the firm has managed to support Core Scientific and Argo Blockchain in the form of loans.

Miners who don’t want to sell Bitcoin

“We serve miners who don’t want to sell Bitcoin. We give them a loan secured by the first cryptocurrency or hash power. The BTC mined by the partners is transferred to us as collateral,” Mashinsky explained.

Earlier in June, the crypto lending platform announced an investment of more than $200 million in BTC mining in North America. Later in October, Celsius Network raised $400 million at a valuation of $3 billion after claims from regulators. Thus, WestCap and Canada’s second-largest pension fund Caisse de dépôt et Placement du Québec (CDPQ) led the round.

Previously in November, the firm acquired GK8, a startup specializing in custodial services, for $115 million. G8 is supporting various crypto assets, decentralized applications and staking. The founders of the Israeli startup Lior Lamesh and Shahar Shamai previously worked as cybersecurity experts in the office of the Prime Minister of Israel.

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