U.S. Bitcoin Corp to Host 150K Crypto Mining Rigs
The contracts are the latest in a series of moves indicating the mining industry is getting back on its feet.
May 18, 2023 at 9:44 a.m. UTC
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U.S. Bitcoin Corp (USBTC) has signed multi-year agreements to host 150,000 bitcoin mining machines with major firms including Marathon Digital Holdings (MARA), the firm told CoinDesk.
The deals showcase the apparent rebound in the mining industry, which is trying to rise after a rough 2022. Last year's crypto downturn led to a lot of major miners going bankrupt, including Compute North, which was originally running the three USBTC sites.
The three bitcoin mines are in Kearney, Nebraska, as well as Granbury and Upton County, Texas. Energy investment firm Generate Capital bought Compute North's stake in two of the sites, one in Nebraska and one in Texas, whereas the Upton County facility is owned and operated in a 50-50 joint venture with NextEra Energy (NEE).
Foundry, Sphere 3D (ANY), Decimal Group, and TeslaWatt are among USBTC's new hosting clients. Foundry is owned by CoinDesk's parent company, Digital Currency Group.
USBTC is in the middle of a merger with Canadian Hut 8 Mining (HUT), one of the biggest consolidation moves in the industry.
While USBTC has seen positive developments in its operations, as it also reached an agreement with the city of Niagara Falls to continue operating its bitcoin mine there, Hut 8 has been facing operational difficulties.
USBTC declined to comment on the estimated value of the hosting deals, citing merger disclosure rules.
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Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.