Celsius

Bitcoin

Planet

<div class="intro-text">
 Celsius Network <a style="color: #0000ff;" href="https://www.businesswire.com/news/home/20231120725219/en/Celsius-to-Transition-to-Mining-Only-NewCo-following-Bankruptcy-Court%E2%80%99s-Confirmation-of-Plan" rel="noopener noreferrer nofollow">announced plans</a> on Monday, November 20, 2023, to pivot its operations and establish a new publicly traded Bitcoin mining company that will be owned by its customers. 
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This decision follows feedback from the Securities and Exchange Commission (SEC) concerning specific aspects of Celsius’s recently confirmed Chapter 11 bankruptcy reorganization plan.
The mining company, called Mining NewCo, was initially conceived to be created in partnership with Fahrenheit LLC. Fahrenheit, a consortium comprised of venture capital firm Arrington Capital and crypto miner U.S. Bitcoin Corp, <a style="color: #0000ff;" href="https://defi-planet.com/2023/05/fahrenheit-consortium-wins-bid-to-acquire-celsius-network-in-a-2-billion-deal/" rel="noopener noreferrer nofollow">reportedly</a> won the bid after a lengthy auction of Celsius assets with a deal estimated to be worth around $2 billion in May 2023.
However, the SEC raised concerns about regulatory issues regarding transferring certain Celsius assets to the consortium. As a result, Celsius will retain those assets to be administered by its Bankruptcy Plan Administrator and Litigation Administrator, who will monetize them for the benefit of creditors as laid out in the reorganization plan.&nbsp;&nbsp;&nbsp;
According to the <a style="color: #0000ff;" href="https://www.businesswire.com/news/home/20231120725219/en/Celsius-to-Transition-to-Mining-Only-NewCo-following-Bankruptcy-Court%E2%80%99s-Confirmation-of-Plan" rel="noopener noreferrer nofollow">official statement</a>, Celsius is now in discussions with multiple parties to secure management of the new mining venture going forward. With a reduced scope compared to the Fahrenheit proposal, Celsius expects lower aggregate fees and more liquid crypto assets available to distribute directly to customers. Though negotiations continue, detailed specifics of the deal remain undisclosed.
The company noted that it will file the modifications to the reorganization plan with the Bankruptcy Court soon. Celsius believes resolicitation of creditor votes will not be necessary, so distributions to creditors are still slated to begin in January 2024.
Celsius Network, once a prominent crypto lending platform,<a style="color: #0000ff;" href="https://defi-planet.com/2022/07/celsius-allegedly-files-for-bankruptcy/" rel="noopener noreferrer nofollow"> filed for bankruptcy in July 2022</a> amid financial distress and liquidity challenges triggered by a surge in withdrawals akin to a bank run.
This strategic pivot toward a customer-owned mining company addresses regulatory concerns while simultaneously establishing a new public Bitcoin mining entity that could unlock additional value beyond the reorganization plan.&nbsp;
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The post <a rel="noopener noreferrer nofollow" href="https://defi-planet.com/2023/11/celsius-network-shifts-gears-announces-plans-to-establish-customer-owned-bitcoin-mining-company/">Celsius Network Shifts Gears, Announces Plans to Establish Customer-Owned Bitcoin Mining Company</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://defi-planet.com">DeFi Planet</a>.

Celsius Network Shifts Gears, Announces Plans to Establish Customer-Owned Bitcoin Mining Company

DeFi Planet

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