Celsius Users Will Have Option To Get Cash at a Discount or ‘Remain Long’ on Crypto: Bankruptcy Management Firm
The embattled crypto brokerage Celsius Network (CEL) is outlining steps it will take to repay its customers.
In a first-day presentation to the United States Bankruptcy Court for Southern District of New York, Celsius says it will offer its customers the choice to “recover either cash at a discount or remain ‘long’ crypto.”
The lending firm claims it will use Bitcoin (BTC) minted by its mining operations to help fund future mining and grow its BTC holdings, and that it will consider asset sales and “third-party investment opportunities.”
Celsius filed for bankruptcy last week after its native CEL token collapsed by more than 99%. The crypto asset’s price initially plummeted in mid-June after the lending firm halted all customer transactions and withdrawals, citing extreme market volatility.
In a recent bankruptcy court filing, filing, Celsius says it has total assets of $4.3 billion and total liabilities amounting to $5.5 billion.
The company says its crypto mining arm, Celsius Mining LLC, projects to generate approximately 15,000 Bitcoin in 2023 worth nearly $350 million at time of writing. Celsius claims it operates more than 43,000 mining rigs and plans to operate 112,000 rigs by the second quarter of next year.
Celsius is trading for $0.77 at time of writing. The 125th-ranked crypto asset by market cap is down nearly 4% in the past 24 hours.
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