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In this newsletter, we summarize some of the big events from this week. Subscribe to get it straight in your inbox.

Here's what happened in the world of mining this week:

• USBTC consortium wins bid for Celsius mining assets 🌡️ 

• Nvidia’s new AI sales forecast raises the interest of miners 🤖 

• Bitcoin mining debate ignoring the people most affected 🧑‍🤝‍🧑 

• Core Scientific aims to formulate reorg plan by end of September 📝 

• Texas Study: Bitcoin ming can help mitigate power shortages ⚡️

USBTC Looking To Add 12.2 EH/s From Celsius 🇺🇸 

• US Bitcoin Corp. (USBTC) aims to become one of the largest miners in the U.S. USBTC plans to increase its computing power by 12.2 EH/s by acquiring mining assets from bankrupt lender Celsius.

• The acquisition includes a lending portfolio, crypto assets, and 121,800 mining machines. Once operational, USBTC's fleet will consist of at least 270,000 mining rigs.

• USBTC will be the exclusive operator of the Celsius mining fleet through operating and services agreements.

• USBTC needs to build infrastructure for the Celsius rigs, including a 100 MW facility, and plan for an additional 240 MW capacity.

• The company will receive a 15.0 MUSD annual management fee, net of operating expenses, for a five-year period.

• The Fahrenheit consortium, including USBTC, won the bankruptcy auction for the Celsius assets. The consortium will receive 20.0 MUSD in management fees and stock incentives in the new company housing the assets.

• The consortium managing the Celsius assets includes Proof Group Capital Management, Steven Kokinos, Ravi Kaza, and USBTC.

• USBTC has expanded its operational capabilities by acquiring sites from Compute North and securing hosting agreements. USBTC is undergoing a merger with Hut 8 Mining and the Celsius deal will further strengthen its position.

Nvidia's Forecast: Bitcoin Miners Consider Datacenters for AI 🤖 

• Nvidia's adjusted positive financial forecast due to increased demand for AI hardware has caught the attention of market analysts and also Bitcoin miners. The new forecast added ca. 200 BUSD to Nvidia’s market cap.

• Some Bitcoin miners are considering diversifying into AI applications by leveraging their operational expertise and datacenter space.

• The positive market reaction to Nvidia's news is expected to incentivize more mining companies to explore AI and allocate power capacity accordingly.

• Companies like Applied Digital, Hut 8 Mining, and Hive Blockchain have already been eyeing diversification into AI.

• Transitioning to AI may not be a straightforward process, as it requires a different infrastructure and expertise compared to Bitcoin mining.

• Challenges include site planning, hiring engineers, sales staff, and considering factors like latency, compliance, cooling, and power redundancy.

• Some miners may not choose to repurpose their facilities for AI, but those with a diverse business approach could expedite the development of AI-related services.

Core Scientific Aims to Formulate a Reorganization Plan by Sep 25 🌋 

• Core Scientific's counsel stated that a reorganization plan could be reached by September 25, accounting for a 90-day exclusivity extension.

• Core Scientific anticipates an extra 46.0 MUSD in funds upon the completion of its restructuring plan, benefiting from improved market conditions despite delays in the bankruptcy proceedings.

• Furthermore, the miner is set to receive a substantial windfall as Celsius Network, a bankrupt crypto lender, owes Core Scientific approximately 11.0 MUSD.

• Creditors have become increasingly impatient with the company's efforts to formulate a restructuring plan. The federal judge overseeing the bankruptcy suggested trimming the timeline by at least one month.

• Creditors have raised concerns and objected to the extension, fearing that it would incentivize Core Scientific to delay the case.

• The company's counsel argued for more time to adapt to the volatile Bitcoin mining landscape and sketch out a business plan.

• Core Scientific's tenure in the crypto industry and the evolving nature of the industry were cited as reasons for a quicker response and adaptation.

• The company experienced a significant decline in valuation and filed for bankruptcy following the cryptocurrency market downturn in November 2022.

Bitcoin’s Actual Environmental Impact Hijacked by Political Debate 🐟️ 

• Within an insightful CoinDesk article, the topic of Bitcoin mining is explored, aiming to dispel misinformation and give voice to those most affected by mining operations.

• Greenidge Generation, a crypto mining facility in New York, has been at the center of this debate, with environmentalists arguing that the plant is causing environmental harm to the local community. However, several claims made by these environmentalists have been found to be inaccurate when compared to state-collected data and local experiences.

• New York-based crypto mining facility Greenidge Generation is particularly targeted by the debates around impact of mining on the environment and local communities.

• Environmentalists have influenced legislation that target companies like Greenidge, making claims about fish deaths and harmful algal blooms that could not be verified by the captured data.

• The Bitcoin mining debate has become highly politicized and polarized between environmentalists and Bitcoin advocates.

• Misinformation and exaggerations have fueled the debate, with both sides presenting flawed arguments.

• Local voices and the community most affected by Greenidge's operations have been largely ignored in the broader debate.

• Some local residents and businesses support Greenidge, emphasizing the economic benefits and contributions to the community.

• The New York State Department of Environmental Conservation denied Greenidge's air permit renewal, despite the company's compliance with guidelines and proposed emission reductions.

• Local supporters of Greenidge prioritize job creation in an area that has suffered from the loss of manufacturing jobs.

• The complexities and nuances of the Bitcoin mining industry, such as the potential for renewable energy integration and the development of more efficient mining technologies, have been overshadowed by the emotionally charged political debates surrounding the topic.

A Study Finds Bitcoin Mining Loads Can Help Mitigate Power Shortages in Texas 🤠 

• A research paper published by the Institute of Electrical and Electronics Engineers highlights the potential of Bitcoin mining loads to address power shortages in Texas.

• The paper suggests that the flexibility of mining loads can significantly alleviate power shortages and market disruptions, allowing large mining facilities to participate in wholesale markets and contribute to mandatory demand response.

• Concerns about the strain on the Texas power grid caused by crypto mining have been raised, with 58% of surveyed Texans expressing worries.

• The Texas power grid has previously struggled to meet surging demand during extreme weather conditions.

• Demand response programs incentivize miners to cut power during periods of high system demand by redirecting the power to the grid.

• Legislators in Texas introduced Senate Bill 1751 to regulate miners using more than 10 MW, requiring them to register as flexible load operators with ERCOT.

• The research paper emphasizes the importance of financial incentives in encouraging the construction of mining facilities in locations with a lower carbon footprint and societal benefits.

• Bitcoin mining companies and blockchain advocates have pushed back against the bill, citing the unique grid-supporting capabilities of Bitcoin mining.

• The paper concludes that policymakers and grid operators should consider location and flexibility when designing ancillary service programs to leverage the grid-supporting capabilities of mining loads.

• Overall, the study suggests that Bitcoin mining can play a vital role in addressing power shortages in Texas, with appropriate regulation and incentives.