Celsius

Bitcoin

Million

Crypto lending company Celsius is making a comeback after its bankruptcy filing in July 2022. The firm aims to relaunch with a new focus on crypto mining and staking, according to <a href="https://en.cryptonomist.ch/2023/10/17/celsius-restarts-crypto-mining/?utm_source=CryptoNews&amp;utm_medium=app">cryptonomist</a>. 
Celsius entered bankruptcy proceedings using the <a href="https://ultramining.com/news/en/senator-lummis-pushes-for-crypto-regulation-amid-sec-lawsuits/">U.S.</a> Chapter 11 process, which allows for debt restructuring instead of asset liquidation. The firm worked diligently on a restructuring plan submitted in July 2023. This plan garnered the support of creditors, setting the stage for a rare and speedy recovery. 
Key to the resolution was the fact that Celsius's debts were calculated in fiat currency, not cryptocurrency. When Celsius filed for bankruptcy, Bitcoin was priced below $21,000. The rise in Bitcoin's value since then has been a windfall for the company. This enabled it to promise creditors a 105% return on the amounts they claimed, effectively settling all debts and claims related to fraud and misrepresentation. 
Now, Celsius has its sights set on a $500 million investment into a new company, referred to as NewCo. This new venture will focus on crypto mining and staking, marking a significant shift from Celsius's original lending business. With these funds, NewCo aims to optimize and expand its mining operations. 
However, the pivot does raise concerns. Celsius's primary expertise was in crypto lending, not mining. Skeptics wonder whether the company can mine effectively and profitably right away, or if this move could lead to more financial struggles. 
Most creditors have backed the 105% repayment plan, making it likely to win court approval. Once that happens, the €500 million earmarked for NewCo could be transferred, and creditor repayments could start as early as year-end.

Bankrupt Celsius Pivots to Crypto Mining in $500 Million Rebirth Plan

Ultramining_Eng

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