Celsius Network doubles Bitcoin mining investment to $ 300 million

Celsius Network doubles Bitcoin mining investment to $ 300 million

Key facts:
  • Celsius has 22,000 Bitmain ASIC miners and has orders placed for more machines for the year than

  • Celsius will use the bitcoin mined to support its loan business, the company’s main

Celsius Network, the Bitcoin (BTC) loan and interest company, announced this week that it would double its investment in another of its businesses: BTC mining, with the intention of expanding its proprietary hash rate and energy capacity in America. from North

According to the company’s CEO, Alex Mashinsky, this is a investment of USD 300 million, designed for commitments this and next year. He also said that the firm will detail the expected growth of the hash rate in the next few months.

This new turn in favor of Bitcoin mining, which It is the lesser-known facet of Celsius, in addition to the USD 200 million that the company had invested at the beginning of the year, with which it bought mining equipment and shares of mining companies Bitcoin Core Scientific, Luxor Technologies and Rhodium Enterprises.

Mashinsky explained, interviewed by The Block, that the investment is intended to turn Celsius, which is a centralized lending and performance platform, into one of the Largest BTC Mining Companies in North Americabuilding on the momentum given by the Chinese onslaught against the industry last July.

According to Mashinsky, Celsius has an operating fleet of 22,000 Bitcoin ASIC miners, all belonging to the newest generation of the Bitmain company, the Antminer S19 Pro.

However, they revealed that They already had backorders for the new Antminer S19 XP miner, launched this month in Dubai, and which so far is the most powerful on the market, with a hash rate of 140 TH / S, a fact reported by CriptoNoticias.

“A lot of people who are buying machines, they think the competition just won’t be there, but obviously now there are a lot more participants, more players, so you really have to be good at this business,” he said.

And what will they use the BTC for?

According to the manager, Celsius will use the bitcoin mined to sustain the loan business. That is, the company will lend bitcoins to other companies to earn interest, in addition to paying interest denominated in BTC to customers who make deposits.

“We are catering to miners who don’t want to sell their bitcoins and loans against their bitcoin or its hashing power, so they can basically send us bitcoins when they mine it,” Mashinsky said.

He also clarified that will only be made for machines that are operating in Europe or North America, voiding the “most unstable” nations of the world.

Celsius Network doubles Bitcoin mining investment to $ 300 million
Celsius will use the bitcoin mined to support the loan business / Photo: Twitter.

Gets into the mining career

What is advertised on Celsius suggests that competition within the BTC mining industry is on the rise, especially considering that last week, mining hardware manufacturer Canaan reported that it was going to increase your own hash rate.

As reported in CriptoNoticias, that the company, based in China, would take its rate to 1% of the total network, in order to adjust the balance between the sales of your cash orders to futures, in addition to the patented mining capacity.

I know he knew that Canaan’s current operating hash rate has remained at 0.032 EH / S since it dabbled in Bitcoin mining, that in the second quarter of the year.

The competition between Bitcoin mining is positive. The fact that more and more companies join the IT activity, makes it known that the existence of the first cryptocurrency and the rest of the market is something guaranteed.

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