Alex Mashinsky is the CEO of central crypto money market Celsius. He revealed that a portion of the company’s recent investment of $200 million into Bitcoin mining infrastructure would be returned to depositors.
Mashinsky spoke to Cointelegraph and stated that the company’s mining expansion has added another stream of yield for crypto depositors, along with lending funds to institutional investors, using DeFi protocols, retail lending and market making on central exchanges.
Celsius announced in June that it had invested more $200 million in North American Bitcoin mining infrastructure. It also has positions in Core Scientific and Rhodium Enterprises.
He said that a large portion of the community has Bitcoin and wants to be paid in Bitcoin.
“By starting a mining company, we guarantee that we can pay our community the interest in Bitcoin.
Celsius was established by a serial entrepreneur in 2017. The platform offers yield on deposits for over 40 digital assets, including Bitcoin, Ethereum and stablecoins.
Mashinsky points out that Celsius’s mining expansion is due to the fact that Bitcoin yields are decreasing amid DeFi’s growth. Many protocols offer interest in Bitcoin deposits and many protocols offer BTC. Celsius does not charge management fees, but takes 20% or more from the generated profits.
Analysts expect that the company will invest in North America’s mining industry, as well as other companies.
Mashinsky doesn’t seem surprised by China’s regulatory actions. He describes the clampdown in China as an attempt to end competition and protect its emerging digital currency (CBDC)
Celsius CEO claims that the exodus of Chinese miners will be beneficial to the decentralization and growth of Bitcoin.
“Moving many of the miners from China is certainly helping Bitcoin become decentralized even further. It’s good for Bitcoin but not necessarily for China’s citizens.
The CEO is optimistic about Bitcoin’s price in the remainder of 2018, stating that it will reach heights of $140,000 to $160,000.
He believes that the markets will reach their peak in 2022. However, Bitcoin will be ‘closed the year below $100,000’ if sellers take advantage of the six-figure profit range.