Ethereum

Celsius

Bitcoin

On January 5th, Celsius, currently navigating bankruptcy proceedings since filing Chapter 11 in July 2022, announced plans to reallocate assets to bolster liquidity for potential creditor reimbursements. Additionally, the company intends to unstake its Ether (ETH) holdings, generating substantial staking rewards, to cover restructuring expenses and expedite creditor payments. 
This move signals a positive turn for Celsius clients, eagerly anticipating fund returns after an 18-month wait. As part of Celsius’ recovery strategy, creditors will receive Bitcoin and/or Ethereum. Nansen, a blockchain analytics firm, reported that Celsius holds approximately 32% of the Ether pending withdrawal, totaling 206,300 ETH, valued at about $468.5 million. 
While concerns loom over the impact of a massive Ethereum withdrawal on its market value, others view it as a catalyst for Ethereum’s future amidst Celsius’ restructuring. 
Celsius’s bankruptcy saga began in 2022 amid a crypto market downturn, halting withdrawals and prompting the Chapter 11 filing. The company devised a plan allowing eligible users to withdraw 72.5% of their crypto holdings by February 28th. Court records show 58,300 users holding $210 million in classified “custody assets.” 
Alex Mashinsky, Celsius Network’s founder and former CEO, recently released on bail following fraud charges, awaits trial starting September 17th. 
In recent developments, Judge Martin Glenn authorized Celsius to pursue an approved alternative plan – forming a new public entity dedicated to Bitcoin mining. This proposal compensates Celsius creditors with shares in the mining venture, utilizing $225 million crypto assets, initially declined by the SEC for other projects. 
The newly proposed company, MiningCo, managed by Hut 8, will focus on Bitcoin mining, overseeing Texas-based facilities with a combined computational power of 12 EH/s and an energy output exceeding 300 MW. MiningCo aims to stake and mine Ethereum, projecting a balance sheet of $1.25 billion, including $450 million in cryptocurrency assets, anticipating annual profits ranging from $10 to $20 million from Ethereum staking. 
The post <a rel="nofollow" href="https://www.unlock-bc.com/115533/celsius-plans-to-unstake-470m-in-eth-for-creditor-settlement/">Celsius Plans to Unstake $470M in ETH for Creditor Settlement</a> appeared first on <a rel="nofollow" href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Celsius Plans to Unstake $470M in ETH for Creditor Settlement

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