Submit Blog Home » Cryptocurrency News » Cryptocurrency News » Celsius users to receive yield from its $200M Bitcoin mining investment Celsius users to receive yield from its $200M Bitcoin mining investment June 30, 2021 “There’s nothing better than building a factory that makes Bitcoin,” said Celsius CEO, Alex Mashinsky.
1044 Total views
3 Total shares
Alex Mashinsky, the CEO of centralized crypto money market Celsius, has revealed that a share of profits from the company’s recent $200 million investment into Bitcoin mining infrastructure will be redistributed back to depositors.
Speaking to Cointelegraph, Mashinsky stated the firm’s mining expansion has added a fifth stream of yield generation for its crypto depositors — alongside lending funds to institutional investors, leveraging DeFi protocols, retail lending, and market making on centralized exchanges.
In early June, Celsius announced it had invested more than $200 million into North American Bitcoin mining infrastructure and positions in Core Scientific, Rhodium Enterprises and Luxor Technologies.
“A big chunk of our community owns Bitcoin and they want to be paid in Bitcoin,” he said, adding: “So, there’s nothing better than building a factory that makes Bitcoin.”
“By creating a mining business we are guaranteeing that we can pay our community what we owe them, which is interest in Bitcoin.”
Celsius was founded by the serial entrepreneur in 2017, with the platform offering yield on deposits for more than 40 digital assets including Bitcoin, Ethereum, and stablecoins.
Celsius’ mining expansion comes as Mashinsky notes Bitcoin yields are shrinking amid the growth of DeFi, with numerous protocols offering interest in the form of BTC on Bitcoin deposits.Celsius doesn’t charge any management fees from users, but instead takes 20% or more of the profits generated.
The company is not alone looking to invest in North America’s mining sector, with analysts expecting the continent will see an influx of miners who have been dislocated by China’s recent crackdown on the sector.
Mashinsky is unsurprised by China’s regulatory moves, characterizing the clampdown as a move to eliminate competition and protect its emerging central bank digital currency (CBDC).
Ultimately, Celsius’ CEO argues the Chinese miner exodus will prove to be beneficial for the decentralization of the Bitcoin network, stating:
“Moving a lot of the miners out of China is definitely helping Bitcoin get decentralized even more.So it’s a good thing for Bitcoin, just not necessarily a good thing for the citizens of China.”
Related: Cointelgraph Magazine — The adventures of the inventive Alex Mashinsky
The CEO has bullish expectations of Bitcoin’s price for the rest of the year, asserting that the price will tag heights of “anywhere between $140,000 and $160,000.”
However, he believes the markets will peak before 2022, asserting Bitcoin will “close the year below $100,000” after sellers step in to take profits in the six-figure price range.Share this: Apple’s Steve Wozniak Co-Founds Blockchain-Focused Venture Capital Fund Apple co-founder Steve Wozniak has been announced as a co-founder of recently launched blockchain-focused venture capital fund EQUI Global, global business outlet Verdict reports Monday, Oct.15.Following an announcement about his plans to become “involved” in a blockchain project earlier in August, Wozniak has been revealed today as a co-founder of EQUI Global, a venture… ETH Zero-Proof Prototype Models: Has Ernst & Young Done What Ethereum Could Not? Multinational auditing and consulting firm, Ernst & Young (EY), announced on October 30 the launch of their EY Ops Chain Public Edition (PE) prototype, the world’s first implementation of zero-knowledge proof (ZKP) technology on the public Ethereum blockchain.This system aims to overcome three main barriers of current transactions and asset transfers on a public blockchain:The… Looking Into the History of Stablecoins to Understand the Future of Money Cryptocurrency was invented and designed to provide numerous benefits for global private and institutional clients, to free people from the burden of banking systems and to create a new financial ecosystem.
The underlying technology, blockchain, can indeed be considered one of the most significant technological advancements of the 21st century, as it provided the groundwork to… 89% of Chinese Blockchain Firms Have Tried to Issue Crypto: Report 89% of China’s blockchain firms have allegedly tried to create their own cryptocurrency, according to a senior exec at a local blockchain association.According to the state-run CCTV on Nov.21, Yedong Zhu, the president of the Beijing Blockchain Technology Application Association (BBAA), revealed that the vast majority of blockchain industry in China is focused on… Report: Traditional Investors Shift to Over-The-Counter Bitcoin Markets In its recent analysis published Dec.17, research firm Diar has found that institutional investors have shifted towards higher liquidity over-the-counter (OTC) physical Bitcoin (BTC) markets.Diar noted growing investment in OTC funds like that offered by major American cryptocurrency exchange Coinbase.According to the report, Coinbase outperformed Grayscale’s Bitcoin Investment Trust (GBTC) on OTC markets… Philippine Government Tech Department Signs Deal With Blockchain Firm The Department of Information and Communications Technology (DICT) of the Philippine government has signed a Memorandum of Agreement (MoA) with U.S.-based blockchain firm Monsoon Blockchain Storage, according to a report by GMA News Online on June 19.The MoA reportedly stipulates that Monsoon is to act as a blockchain consultant and advisor to DICT, offering services… “I’m not buying anything,” says Tron CEO Amid Reports of Poloniex Acquisition Tron (TRX) founder and CEO Justin Sun has possibly refuted recent reports suggesting that he is leading an investment group behind the acquisition of cryptocurrency exchange Poloniex.In a tweet published on Oct.
19, Sun has claimed that he is “not buying anything,” noting that he is an investor and disclosing some of his crypto assets:“Just… Abkhazia government blames illegal crypto mining for energy crisis It is already illegal to mine crypto within the de facto state.Abkhazia, a de facto state in the South Caucasus, continues to face an energy crisis.The head of the region’s national energy provider recently blamed increased crypto mining activity for the problems.According to Jam News, the government’s year-old ban on crypto mining has… Phase Zero Code for Ethereum PoS Transition Can Be Completed by June 30: ETH Core Devs A code for the Ethereum (ETH) blockchain’s first-stage transition to a proof-of-stake (PoS) consensus algorithm could be completed by June 30, as stated in an Ethereum core developers meeting on May 2.In a bi-weekly call, Ethereum researcher Justin Drake claimed that the developers team expects to prepare code specifications for phase zero by the end… Leave a Reply You must be logged in to post a comment.Search .