• Celsius, a cryptocurrency lender, has increased its Bitcoin mining investment to $500 million

  • Celsius Network has increased its investment in Bitcoin mining by $300 million.

    Celsius CEO Alex Mashinsky told The Block on Monday that the investment was made to expand its proprietary Bitcoin mining hash rate and power capacity in North America.

    “These are commitments for this year and next year,” he explained, “so we will be adding [mining] capacity all the time until the end of next year.” He also stated that the company will break down the expected hash rate growth over the next few months.

    Celsius previously invested $200 million in Bitcoin mining equipment and equity in Bitcoin mining firms Core Scientific, Rhodium Enterprises, and mining pool Luxor Technologies earlier this year. Core Scientific is in the process of merging with the goal of going public, whereas Rhodium has filed for a $100 million initial public offering in the United States.

    The investment puts the centralized lending and yield-earning platform on track to become one of North America’s major Bitcoin mining firms.

    Mashinsky stated that Celsius now has an operational mining fleet of approximately 22,000 Bitcoin ASIC miners, the majority of which are Bitmain’s newest AntMiner S19 series. Earlier this month, during Bitmain’s conference in Dubai, the company announced that it has pending orders for Bitmain’s newest AntMiner S19XP model, which has a computing power of 140 terahashes per second (TH/s).

    Celsius’ increased investment is part of a North American Bitcoin mining infrastructure and fundraise boom that seeks to capitalize on the opportunity created by China’s mining crackdown.

    “A lot of people who buy machines think the competition isn’t going to be there,” Mashinsky said. “But obviously now there are a lot more participants, more players, so you really have to be good at this business.”

    Celsius is distinct in that it will use the bitcoin it mines as part of its existing lending business. The company earns interest by lending bitcoin to institutions and paying out bitcoin-denominated interest to deposit customers. As of November, Celsius’s assets totaled $28.6 billion.

    Celsius is distinct in that it will use the bitcoin it mines as part of its existing lending business. The company earns interest by lending bitcoin to institutions and paying out bitcoin-denominated interest to deposit customers. As of November, Celsius’s assets totaled $28.6 billion.

    Celsius entered the mining industry in 2020, providing loans and equipment leases to mining companies such as Core Scientific and Argo Blockchain as part of their facility expansion plans.

    “We cater to miners who don’t want to sell their bitcoin, and we lend against their bitcoin or hash power, so they can basically send us bitcoin [as collateral] when they mine it,” Mashinsky explained. However, he added that the company will only do so for machines based in Europe or North America, not in more volatile regions.

    Celsius announced last month that it had raised $400 million in a round led by growth equity firm WestCap, valuing the company at $3 billion. It came amid mounting regulatory scrutiny of the company’s revenue-generating products in the United States.

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