Towards a Celsius 2.0 Powered by Bitcoin (BTC) Mining?

The Terra storm heavily impacted the Bitcoin price and several crypto projects, including Celsius Network. In July 2022, the crypto lender formerly led by Alex Mashinsky declared bankruptcy, with a balance sheet burdened by over $4.7 billion in debt to its users. However, the Celsius team remained resilient during these challenging times. Recently, the bankruptcy court gave the green light for the execution of the financial restructuring plan for this crypto company. To top it off, Celsius acquired a Bitcoin mining site in Texas.

In brief:

• Celsius Network has acquired a Texas-based Bitcoin mining site owned by Core Scientific for $14 million,
• Celsius and Core also resolve a long-standing dispute in the process.

Celsius Network acquires a Bitcoin mining site in Texas

It has been over a year since Celsius Network sought bankruptcy protection under Chapter 11. Fourteen months were enough to have the administration’s “Plan” for this crypto lender validated by the United States bankruptcy court.

The beginning of repayments to Celsius clients seems imminent.

Celsius Network and Core Scientific settlement. In exchange, Core will sell the Cedarvale site to Celsius and release all of Core’s own claims against Celsius. https://t.co/NN2Zs4WYBa pic.twitter.com/o5MCD3rdVA

— Ang 💕🌈💕🌈💕 (@Ang_0ne) September 15, 2023

According to Crypto News, Core Scientific has sold a BTC mining site in Texas to Celsius Network. The value of this infrastructure amounts to $14 million.

According to the document filed with the court, the newly acquired Bitcoin mining site by Celsius is located in Cedarvale, Ward County, Texas. Despite having a power capacity of 215 megawatts, this mining facility will not immediately yield bitcoins for Celsius. They must first undertake some technical work before reaping BTC rewards.

The Texas Bitcoin mining site is ‘partially developed and non-operational.’ Now that Celsius Network, the issuer of CEL, has the site’s design plans at their disposal, they will be able to complete its construction in a short period.

The aforementioned document also referred to this BTC mining site as a “key component of Celsius’s reorganized mining operations within the framework of its plan.”

Celsius and Core, separated and reconciled through Bitcoin mining

The relationship between crypto lender Celsius and Bitcoin mining specialist Core Scientific had not been going well for some time. Celsius Network’s financial difficulties prevented it from paying its dues and electricity bills for the 37,000 bitcoin platforms hosted by Core.

However, Core Scientific also faced its own financial troubles. In July, a financial shortfall of $10 billion was reported.

As a result, earlier this year, Core Scientific had to declare bankruptcy. Yet, it possesses 130,000 Bitcoin mining machines, yielding it 50 BTC per day.

In such circumstances, Core had no choice but to part ways with its insolvent tenant, Celsius Network.

Through the acquisition of this Bitcoin mining site, Celsius Network gains several advantages, including Core Scientific waiving debts worth $31 million.

Adam Sullivan, CEO of Core Scientific, expressed satisfaction with this new agreement with Celsius. It will undoubtedly facilitate the resolution of “all existing disputes.”

At this point, can we dream of Celsius 2.0? Will Bitcoin enthusiasts see the rebirth of Celsius Network as a new impetus for the crypto industry? The case of FTX 2.0 has shown us that opinions differ regarding the potential revival of a fallen crypto project.