Cryptocurrency News

Celsius doubles down on North American Bitcoin mining

  • Celsius Network has announced that it has increased its investment in Bitcoin mining in North America
  • The $300 million investment follows Celsius' $200 million investment earlier this year
  • Celsius uses the Bitcoin it mines as part of its existing lending business

Celsius Network has announced that it has increased its investment in Bitcoin mining in North America, investing an additional $300 million.

Celsius aims to expand its Bitcoin mining hash rate in North America

The $300 million investment follows Celsius’ $200 million investment earlier this year in Bitcoin mining equipment and stakes in Bitcoin mining companies Core Scientific, Rhodium Enterprises, and mining pool Luxor Technologies. According to the report, Celsius now has a mining fleet of about 22,000 Bitcoin ASIC miners, most of which are Bitmain’s latest generation AntMiner S19 series.

In an interview with The Block, Alex Mashinsky, CEO of Celsius, said that Celsius has invested in Bitcoin mining to expand its proprietary Bitcoin mining hash rate and performance capacity in North America. He explained, “These are commitments for this year and next year – so we will be adding [mining] capacity through the time until the end of next year.”

China’s crackdown on the mining sector created an opportunity

It’s quite logical for Celsius to invest in Bitcoin mining in North America, as many investors see it as an opportunity created by China’s crackdown on the mining sector. Twelve months ago, China led the market in hash rate by a wide margin, but recently North American Bitcoin miners have taken the lead. Foundry USA, for example, recently became the second-largest Bitcoin mining pool in the world after taking up a 14.39% share of the network at the time of writing.

Another notable fact about the investment is that Celsius uses the Bitcoin it mines as part of its existing lending business. The company lends Bitcoin to institutions to earn interest and pays out Bitcoin interest to customers with deposits. Celsius began entering the mining sector in 2020, lending and leasing equipment to mining companies like Core Scientific and Argo Blockchain for their expansion plans.

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About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and blockchain startups.

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