Celsius Mines Its Own Business
Market Meditations | July 19, 2022
Celsius’ first day in court came Monday as a result of the company filing for Chapter 11 bankruptcy protection in New York last week.
- Crypto lender Celsius still owes creditors more than $5 billion as of Monday, it was revealed in the first company’s first bankruptcy hearing. These creditors are mostly made up of retail investors who deposited assets into the platform.
- Celsius CEO Alex Mashinsky laid out a plan before the court in a 61-page document, outlining his plan to recapture losses – the mining operation subsidiary Celsius Mining.
- Celsius lawyers requested that the court approve more than $5 million in spending for the defunct crypto platform to finish construction of a Texas mining center.
- The request was tentatively approved, but U.S. Trustee Program lawyer Shara Cornell spoke out against the move, asking, “Why not just consider liquidating it [Celsius Mining} and move on?”
According to Celsius attorneys, the mining operation already includes over 43,000 rigs, and was expecting to mine 10,100 (worth about $222 million at today’s price) coins in 2022. Even if this plan succeeds and mining operations are allowed to be brought online, it would only equate to a fraction of what’s needed for Celsius solvent.