Celsius’ Bitcoin Mining Assets to Restart as New Firm Prepares to Go Public

February 2, 2024 | by


In a move signaling the resurgence of Celsius’ Bitcoin mining assets, a new company called Ionic Digital has emerged with plans to go public. Ionic will acquire all of Celsius’ mining assets, including self-mining capacity, hosted mining at third-party sites, and a site currently under development. With an operational mining power of 6 exahash per second (EH/s) and a projected capacity of 12.7 EH/s, Ionic aims to become one of the top miners in North America. The company expects to go public in the coming months, with Celsius creditors becoming the new company’s shareholders. This development comes as other mining companies, such as Swan Bitcoin, are also looking to go public in anticipation of the Bitcoin halving event. Hut 8 will provide mining management services for Ionic, solidifying their position in the market.

Celsius’ Bitcoin Mining Assets to Restart as New Firm Prepares to Go Public

Introduction to the article

In a significant development for the Bitcoin mining industry, Celsius’ Bitcoin mining assets are set to restart under a new firm called Ionic Digital. The company aims to become one of the leading miners in North America and has plans to go public in the near future. This article will provide an overview of Celsius’ Bitcoin mining assets, discuss the acquisition by Ionic Digital, explore the mining capacity and expansion plans of the new company, highlight its partnerships and leadership, and delve into the details of its upcoming initial public offering.

Background Information

Overview of Celsius’ Bitcoin mining assets

Celsius, a bankrupt lender, possesses various Bitcoin mining assets that are set to be acquired by Ionic Digital. These assets include self-mining capacity, hosted mining at third-party sites, and a site under development called Cedarvale. The combined capacity of these assets amounts to approximately 87 megawatts (MW) of self-mining and 142 MW of hosted mining.

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Announcement of Ionic Digital’s acquisition

Ionic Digital has emerged as the buyer of Celsius’ Bitcoin mining assets. The acquisition marks a significant step for Ionic Digital in its goal to become a leading Bitcoin miner in North America. The details of the acquisition, including the financial terms and agreements, have not been disclosed at this time.

Details of the mining assets being acquired

The mining assets being acquired from Celsius include self-mining capacity, hosted mining at third-party sites, and a development site called Cedarvale. The self-mining capacity amounts to approximately 87 MW, while the hosted mining capacity reaches 142 MW. The Cedarvale site is currently under development and is expected to have a mining capacity of 240 MW once fully operational.

Mining Capacity and Expansion Plans

Current mining power of Ionic Digital

At present, Ionic Digital has a mining power of 6 exahash per second (EH/s). This signifies the computational power the company has dedicated to mining Bitcoin. With this mining power, Ionic Digital is already a significant player in the mining industry.

Expected mining capacity after full operations

According to a spokesperson from Ionic Digital, the company expects to achieve a mining capacity of 12.7 exahash per second (EH/s) once its fleets are fully operational within this year. This increase in mining capacity will solidify Ionic Digital’s position as a major player in North America’s Bitcoin mining industry.

The significance of the upcoming bitcoin halving event

Ionic Digital’s expansion plans coincide with an important event in the Bitcoin mining industry: the upcoming Bitcoin halving event. This event, which will see mining rewards cut in half, has prompted many mining companies to strategize and position themselves for optimal profitability. Ionic Digital, with its increased mining capacity, aims to take advantage of the changing landscape and continue to be a competitive force in the industry.

Competition in the mining industry

The mining industry is becoming increasingly competitive, with several new mining companies vying for market share. Ionic Digital acknowledges this competition but remains confident in its ability to navigate the industry landscape. The company emphasizes its flexibility and strong financial backing as key assets that will help it thrive amidst competition.

Flexibility and financial backing of Ionic Digital

Ionic Digital emphasizes its flexibility and strong financial backing as factors that set it apart from its competitors. The company’s ability to adapt to the changing dynamics of the mining industry and the support it receives from its financial backers give it a competitive edge in the market. Ionic Digital intends to leverage these advantages to further solidify its position as a leading Bitcoin miner.

Partnerships and Leadership

Hut 8’s role in providing mining management services

Hut 8, a company that merged with US Bitcoin Corp., will provide mining management services to Ionic Digital. As part of the partnership, Hut 8 will be responsible for managing the mining operations of Ionic Digital in exchange for a fee of over $20 million per year. This partnership will leverage Hut 8’s expertise in mining management to ensure the efficient and effective operation of Ionic Digital’s mining assets.

Payment and equity structure of the partnership

In addition to the fee paid to Hut 8 for mining management services, the partnership between Hut 8 and Ionic Digital includes a payment in the form of restricted stock and incentive equity. These additional components of the partnership’s payment structure further align the interests of both companies and incentivize the success of Ionic Digital’s mining operations.

Appointment of Matt Prusak as CEO

Matt Prusak, the former chief commercial officer of Hut 8 and US Bitcoin Corp., has been appointed as the CEO of Ionic Digital. Prusak brings a wealth of experience and industry knowledge to the position, having previously been involved in the leadership of Hut 8. His appointment as CEO further strengthens Ionic Digital’s leadership team and positions the company for success in its mining endeavors.

Board of directors composition

The board of directors of Ionic Digital will include key leaders from both Ionic Digital and Hut 8. Asher Genoot, the President of Hut 8, will also serve on the board of directors of the new company. This composition ensures that the expertise and insights of both companies are represented in the strategic decision-making process of Ionic Digital.

Going Public

Upcoming initial public offering of Ionic Digital

Ionic Digital has plans to go public in the near future, signaling the company’s confidence in its prospects and its intention to showcase its operations to the investment community. The decision to go public aligns with Ionic Digital’s vision of becoming a leading Bitcoin miner and positions the company for further growth and expansion.

Filing of Form-10 with the SEC

As part of the process toward going public, Ionic Digital has filed Form-10 with the U.S. Securities and Exchange Commission (SEC). This filing is an important step in the regulatory requirements for a company seeking to list on a public exchange. Ionic Digital’s filing of Form-10 demonstrates the company’s commitment to a transparent and compliant path to becoming a publicly traded entity.


Ownership structure of the new company

Upon going public, Celsius creditors will become shareholders of Ionic Digital. The creditors will own equity in the form of common stock, allowing them to participate in the future success of the company. This ownership structure ensures that the creditors, who have a vested interest in Celsius’ assets, have a stake in the new company’s operations and performance.

Celsius creditors becoming shareholders

The acquisition of Celsius’ Bitcoin mining assets by Ionic Digital presents an opportunity for Celsius creditors to become shareholders of the new company. This transition allows the creditors to retain ownership in the Bitcoin mining assets they previously had a stake in, while also positioning them to benefit from Ionic Digital’s growth and success as it goes public.

Conclusion and Impact

Impact of Ionic Digital as a leading bitcoin miner

With its increased mining capacity and strategic partnerships, Ionic Digital is poised to make a significant impact as a leading Bitcoin miner. The company’s ambitions to go public and its commitment to transparency and compliance demonstrate its dedication to becoming a trusted player in the mining industry. As Ionic Digital continues to grow and expand its operations, its contributions to the Bitcoin mining ecosystem will be closely watched.

Strategic vision and positioning of the new company

Ionic Digital’s strategic vision revolves around becoming one of the top miners in North America. The company’s acquisition of Celsius’ mining assets, its partnerships with industry leaders like Hut 8, and its plans to go public all contribute to its positioning as a strong and competitive player in the mining industry. By leveraging its strengths and adapting to industry developments, Ionic Digital aims to achieve its strategic vision.

Reflection on the growth and competitiveness of the mining industry

The entry of Ionic Digital into the Bitcoin mining industry is a reflection of the industry’s growth and competitiveness. The increasing number of mining companies looking to go public and the emphasis on partnerships and financial backing demonstrate the evolving dynamics of the industry. As the mining industry continues to mature, companies like Ionic Digital will play a crucial role in shaping its future.


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