US Bitcoin Corp Announces July 2023 Production and Operations Updates
- Revenue from hosting and property management services has grown significantly, providing strong revenue visibility and downside protection.
- The company contributed 286 bitcoins to its portfolio through self-mining in July.
- None.
Operational Metrics1 |
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Month-End Miners Under Management |
189,349 |
Month-End Hashrate Under Management |
18.99 EH/s |
Estimated Pro Forma Operational Metrics Assuming Consummation of the Celsius Transaction2 |
|
Miners Under Management |
311,349 |
Hashrate Under Management |
31.19 EH/s |
Self-Mining Metrics3 |
|
Month-End Miners Installed |
48,255 |
Month-End Hashrate Installed |
4.9 EH/s |
Energy Metrics |
|
Month-End Megawatts Under Management1 |
730 MW |
Energy Volume Supplied for Grid Relief and Ancillary Services4 |
33,580 MWh |
Energy Sold From Echo Wind Farm into ERCOT |
3,071 MWh |
Commentary
“USBTC reached a major milestone this month in its pursuit of building a resilient, diversified revenue base,” said Asher Genoot, President of USBTC. “As we continue to scale, self-mining no longer represents the primary driver of the company’s revenue stream. Hosting and property management revenues have grown significantly, creating strong revenue visibility and downside protection. At the same time, we continue to maintain significant upside potential should bitcoin run by optimizing our self-mining operations and building profit share structures into our hosting and property management agreements. In July, self-mining contributed 286 bitcoins to our portfolio.”
Celsius Mining Operations
On May 25, 2023, the Company, as part of the Fahrenheit LLC coalition, won a bankruptcy auction to manage and operate the assets owned by Celsius Network LLC (“Celsius”), which includes a lending portfolio, digital assets, and approximately 122,000 mining machines, subject to the approval of the bankruptcy court. In addition, the Company, acting separately through its USMIO business, won the right to enter into one or more operating and services agreements with the restructured company, which is also subject to the approval of the bankruptcy court.
The Company previously announced that it secured hosting agreements for approximately 150,000 bitcoin miners. These companies include Teslawatt, Marathon Digital, Foundry
Merger with Hut 8
On February 7, 2023, the Company announced an all-stock merger of equals (the “Transaction”) with Hut 8 Mining Corp. (Nasdaq, TSX: HUT), one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure providers. The combined company will be named “Hut 8 Corp.” (“New Hut”) and will be a
About US Bitcoin Corp
Founded by a team of visionary entrepreneurs and experienced executives, USBTC is an efficient, eco-friendly, and large-scale North American mining company. Through cutting-edge technology and a relentless commitment to operational excellence, USBTC seeks to set the standard for what is possible in its industry.
With campuses in
Cautionary note regarding Forward–Looking Information
This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and
Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by USBTC and Hut 8 as of the date of this communication, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the ability to obtain requisite shareholder approvals and the satisfaction of other conditions to the consummation of the transaction on the proposed terms or at all; the ability to obtain necessary stock exchange, regulatory, governmental or other approvals in the time assumed or at all; the anticipated timeline for the completion of the transaction; the ability to realize the anticipated benefits of the transaction or implementing the business plan for New Hut, including as a result of a delay in completing the transaction or difficulty in integrating the businesses of the companies involved (including the retention of key employees); the ability to realize synergies and cost savings at the times, and to the extent, anticipated; the potential impact on mining activities; the potential impact of the announcement or consummation of the transaction on relationships, including with regulatory bodies, employees, suppliers, customers, competitors and other key stakeholders; security and cybersecurity threats and hacks; malicious actors or botnet obtaining control of processing power on the Bitcoin network; further development and acceptance of the Bitcoin network; changes to Bitcoin mining difficulty; loss or destruction of private keys; increases in fees for recording transactions in the Blockchain; internet and power disruptions; geopolitical events; uncertainty in the development of cryptographic and algorithmic protocols; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; climate change; currency risk; lending risk and recovery of potential losses; litigation risk; business integration risk; changes in market demand; changes in network and infrastructure; system interruption; changes in leasing arrangements; failure to achieve intended benefits of power purchase agreements; potential for interrupted delivery, or suspension of the delivery, of energy to New Hut’s mining sites; failure of the Celsius transaction to receive the necessary legal approvals or failure of the Celsius transaction to otherwise close; and failure to achieve the intended benefits of the Celsius Transaction and expected impact on USBTC’s business and miners and hashrate under management.
1Includes installed self-mining, hosting and co-located operations for core business and King Mountain JV; excludes Celsius assets |
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2Includes installed self-mining, hosting and co-located operations for core business, King Mountain JV and Celsius assets (assuming the Celsius transaction had closed in the relevant time period for purposes of the calculation). The Celsius transaction has not been consummated and any consummation thereof remains subject to a number of factors, including approval of the bankruptcy court. There can be no assurances as to the consummation of the Celsius transaction. |
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3Includes |
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4Represents total megawatt hours curtailed during the period for ancillary services across all owned and managed sites – all MWHs are from economic curtailment |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230817840081/en/
Matt Prusak
info@usbitcoin.com
Source: US Bitcoin Corp
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