Celsius to invest $ 300 million in Bitcoin mining

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Key points to remember

  • Celsius has invested $ 300 million in the Bitcoin mining industry.
  • Previously, it had invested $ 200 million in mining equipment and equity, bringing its total investment to $ 500 million.
  • The news comes months after China’s crypto ban, which has helped the U.S. crypto mining industry gain the upper hand.

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Cryptocurrency lender Celsius Network has invested additional funds in Bitcoin mining, according to statements by CEO Alex Mashinsky.

Celsius invested $ 500 million in mining

Mashinsky said The block Monday that the company invested $ 300 million in Bitcoin’s North American mining operations.

“These are commitments for this year and next year, so we will add [mining] capacity all the time until the end of next year, ”Mashinsky said in an interview with the crypto news site.

Earlier this year, Celsius invested $ 200 million in mining equipment and mining company equity. That brings Celsius’ total investment in mining to $ 500 million, not including loans and equipment rentals it made to mining companies in 2020.

Celsius now has around 22,000 ASIC miners, a collection mostly made up of Bitmain’s AntMiner S19 devices. He also ordered Bitmain’s upcoming AntMiner S19XP.

Bitcoin mining in the US grows

News of Celsius crypto investments comes as Bitcoin mining industry moves to the United States In September, a large-scale crypto ban in China forced many eastern mining companies to abandon their efforts, leaving room for US-based companies to take the lead.

Celsius is just one of many non-mining companies that have taken an interest in this trend. Jack Dorsey Square’s payment company is reportedly plan to build a Bitcoin mining system. Meanwhile, MicroStrategy Director Michael Saylor is leading the Bitcoin Mining Council, which focuses on sustainable energy in mining.

Celsius primarily provides a crypto lending service, with cash lending and the generation of interest. Celsius will use the Bitcoin it earns from mining to fund these existing services.

Celsius has increased significantly since its inception in 2018. Last month it completed a $ 400 million round table, bringing its valuation to 3.25 billion dollars. The company also manages approximately $ 28.6 billion in assets on behalf of its clients.

Disclosure: At the time of writing, the author of this article had less than $ 100 worth of BTC, ETH, and altcoins.

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