Ionic Digital Starts Mining Bitcoin

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Feb 01, 2024, 09:00 ET

Mining machines and associated infrastructure acquired from Celsius Mining

AUSTIN, Texas, Feb. 1, 2024 /PRNewswire/ -- Ionic Digital (the "company"), North America's newest best-in-class bitcoin miner and emerging innovator in energy monetization, today announced its establishment. In a deal with Celsius Mining LLC, the company is acquiring approximately 127,000 bitcoin mining machines and infrastructure for 87 megawatts (MW) of self-mining capacity across four existing facilities; 142 MW of capacity for hosted bitcoin mining at third-party sites; and the Cedarvale site, in development to reach a capacity of 240 MW. With its fleet in full operation, Ionic Digital's bitcoin mining fleet is expected to achieve a hash rate of 12.7 exahash per second (EH/s), establishing it as one of the largest companies in North America securing the Bitcoin network.

Matt Prusak, CEO of Ionic Digital, commented, "With our substantial mining fleet and infrastructure managed in our partnership with Hut 8, seasoned leadership team, and strategic vision, Ionic Digital is ready to make an impact as a leading bitcoin miner. We want Ionic to be a company that believes in transparency and doing what is right for our shareholders. Our focus is on turning energy into value, reliably and responsibly."

Ionic Digital's mining sites primarily will be located in Texas, taking advantage of the state's favorable regulatory climate and energy market. The company plans to implement strategies to minimize energy costs while adhering to the standards set by the Electric Reliability Council of Texas (ERCOT) and participating in energy management programs.

Mr. Prusak continued, "We're deeply committed to fostering robust community ties and prioritizing local hiring. This commitment extends to supporting grid resiliency. We understand the importance of responsive energy management and are fully prepared to adjust our power consumption as advised by our partners, including ERCOT. This flexibility not only supports grid stability but also exemplifies our intention to be a responsible and adaptive partner in our communities' energy ecosystem."

Led by Mr. Prusak, former Chief Commercial Officer at Hut 8 and US Bitcoin Corp, the company will look to build powerful partnerships in both the crypto and energy industries. A tenured industry veteran, Mr. Prusak holds an MBA from Stanford and began his career with Bain & Company before entering the bitcoin mining space.

Joining him to lead Ionic Digital is Joel Block, Chief Financial Officer. Mr. Block brings over 15 years of diverse experience in finance, operations, and sales. Having served in pivotal roles at US Bitcoin Corp., Block has a strong background in the digital asset industry. His tenure at Collegewise as CFO and CEO, and his time on the institutional fixed-income sales desk at Credit Suisse, enrich his financial and strategic acumen.

Mr. Block remarked, "At Ionic Digital, our financial strategy will be intricately crafted to navigate the complexities of the digital asset landscape. We'll be focused on leveraging our assets for the benefit of our shareholders and maintaining operational agility in a fluctuating market. Our approach will involve prudent capital allocation and vigilant management of operational expenditures, ensuring robust economic resilience. This strategy is key to our mission of setting new standards in the bitcoin mining industry for financial astuteness and sustainable business expansion."

With a strong balance sheet and experienced management, Ionic Digital expects to be able to execute a growth strategy focused on bitcoin mining, while watching for opportunities to repurpose its infrastructure to support other business lines that require high-performance computing in the future.

About Ionic Digital

Ionic Digital is North America's newest best-in-class bitcoin miner and emerging innovator in energy monetization. With facilities across in North America, Ionic expects to have the ability to deploy up to 12.7 exahash to the Bitcoin Network. For more information, visit ionicdigital.com and follow us on X at @IonicDigital.

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SOURCE Ionic Digital