Celsius

Future

Bitcoin

Billion

<ul class="list-ic vertical">
 <li>1 <a>Celsius Network, a bankruptcy crypto lending platform got approval to shift to the backup plan.</a></li>
 <li>2 <a>US bankruptcy Judge found Celsius’s platform enough potent to switch to Bitcoin mining.&nbsp;</a></li>
</ul>
December 28, 2023, became a big day for Celsius Network, as the court approved Network’s shift to Bitcoin mining. Martin Glenn, the US bankruptcy judge found the Celsius network enough capable to make a shift to the backup plan, that is Bitcoin mining.&nbsp;&nbsp;&nbsp;
<h2 class="wp-block-heading" id="strong-the-backup-plan-strong">The Backup Plan&nbsp;</h2>
According to Reuters, the US <a href="https://www.thecoinrepublic.com/2023/12/28/litecoin-price-forecast-is-it-the-right-time-to-buy-ltc/" target="_blank" rel="noopener noreferrer nofollow">bankruptcy</a> judge has permitted the bankrupt crypto lending platform, assuming customers and creditors were no worse off with the backup plan.
As an opportunity to deviate from bankruptcy, Martine Glenn thinks that the network is enough flexible to handle the Bitcoin mining plan.&nbsp;
“After hitting a roadblock with the US SEC, the platform is all prepared to go for Bitcoin mining”, Martin said.&nbsp;
In July 2022, the network applied for Chapter 11 protection to initiate a new line of business. Filing was done by the network one month after ceasing the customer’s accounts to prevent withdrawal.&nbsp;
The platform had around 600K customers holding around $4.4 Billion when it went bankrupt. As per the new plan, Celsius decided to return over $2 Billion in crypto to account holders.&nbsp;
In November 2023, the bankruptcy plan was approved, allowing the network to make a plan that would return cryptocurrency to the clients and develop a new company.&nbsp;&nbsp;&nbsp;
Now approved, the network is expected to part tracks with a few of the bidders chosen to manage the new platform. US Bitcoin Squarely will be going to run the new mining business. Around $225 Million in crypto would have been utilized to fund the new business.&nbsp;&nbsp;
US Bitcoin Squarely, the new manager of the Celsius mining business, was founded by Hut 8’s Asher Genoot. In addition to this, the mining business will also include other companies like Arrington Capital to involve bidders. The group in the combine was collectively called “Fahrenheit”.&nbsp;&nbsp;
<h2 class="wp-block-heading" id="strong-celsius-s-future-expectations-strong">Celsius’s Future Expectations&nbsp;&nbsp;</h2>
Looking at the whole scenario, the Celsius network is expected to emerge out of the bankruptcy case in early 2024.&nbsp;
As per the plan, most of the digital assets will be returned to the clients and customers along with offering equity shared to the customers in the new mining business, Martin explained.
However, a few of the creditors and the US Department of Justice’s bankruptcy members were concerned about the judgment. According to the watchdog, it is a significant step and requires a new vote by creditors, to make the plan work.
The court’s hearing on November 30, 2023, stated the mining plan was not a deal to vote on, and hence, Martin just approved the proposal without thinking of a new vote.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On approval, Chris Ferraro, the interim CEO of Celsius promised the distribution of the crypto to the creditors and successful implementation of the new plan.&nbsp;&nbsp;
<h4 class="wp-block-heading">Disclaimer&nbsp;</h4>
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

Celsius Network’s Pivot to Bitcoin Mining Plan Approved By Court

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Thecoinrepublic.com

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