Cuentas Inc. Enters Power-as-a-Service Deal for Up to 24 MW

What Happened

• On September 20, 2026, Cuentas, Inc. announced it entered a Power-as-a-Service and Colocation Services Agreement with Power Upp USA, Inc. to host and power up to ten container sets at a powered-land site in Seminole, Texas. Each container set has a contracted demand of 2.4 MW (2,400 kWe); fully deployed this equals 24.0 MW and is expected to house roughly 420 ASIC miners per container (about 4,200 total).
• Deployment is staged (targeting one container set every 90 days after each Service Commencement Date). The agreement includes one-time charges of $500,000 per container for preparation of up to 432 customer-owned ASIC miners and a $90,000 security deposit per container (if all ten deploy, $5.0M one-time charges + $900k deposits). Mobilization fees are included.

Key Details

• Recurring costs per container: 5% of Gross Mining Revenues + $2,500/month, plus $0.05 per kWh delivered (subject to CPI and fuel-cost adjustments and pass-through taxes).
• Minimum utilization/take-or-pay: Company must maintain 80% of contracted demand per deployed container (shortfalls generally still incur energy charges to meet the minimum).
• Bitcoin-price suspension: If BTC closes below $55,000 for 15 consecutive trading days, Cuentas may suspend operations (up to one month) on mutual written agreement for a $7,500 suspension fee; if BTC remains below threshold after suspension, either party may terminate that Service Order without early termination fee.
• Term/insurance: Initial term 36 months, auto-renews for 12-month periods unless 90 days’ prior notice; Cuentas must maintain specified insurance (e.g., $2M per-occurrence / $4M aggregate general liability) and revenue-control arrangements.

Why It Matters

• This agreement creates a clear path to materially increase Cuentas’ mining capacity and production (up to 24 MW and ~4,200 miners) but also brings upfront capital commitments (potentially $5.0M plus deposits) and ongoing operational costs tied to energy use and a revenue share.
• Contract terms include significant take-or-pay and minimum utilization obligations that could affect cash flow if mining revenues or Bitcoin prices fall; the agreement’s limited BTC-price suspension right is short-term and conditional.
• Investors should note the mix of variable (energy, revenue share) and fixed/committed costs (one-time charges, deposits, minimum utilization), which will influence the company’s operating leverage and sensitivity to electricity prices and Bitcoin market moves.