Celsius begins restructuring, receives approval for Bitcoin Mining Facility

Celsius Network has received approval to build a new bitcoin mining facility, as plans for financial restructuring of the business are gaining momentum. The company starts a new journey, which will be followed closely.

Celsius Network has taken steps forward in its plans to implement financial restructuring, according to recent documents that have been published. One of the key strategies in this plan is bitcoin mining, as the company plans to spend $ 3.7 million to build a new facility and an additional $ 1.5 million on duties and taxes to import bitcoin mining rigs and has already received approval for this effort.

Celsius restructures and reassesses

Celsius already has a mining operation in the United States. It currently operates over 43,000 mining rigs and the document states that it plans to increase this to 112,000 by the second quarter of 2023.

The document also shows that Celsius’ assets fall from $ 22.1 billion to $ 4.3 billion between March 30 and July 14, with third-party liquidations amounting to almost $ 1 billion. It notes several proactive steps taken by Celsius to protect and preserve assets, including the suspension of customer services.

When it comes to the next steps, there are four main items on the agenda. The first is to “Preserve value while negotiating a comprehensive stakeholder restructuring transaction.” The other refers to bitcoin mining to extract btc, which will be used to finance more mining and increase bitcoin holdings.

It also considers the sale of assets and investment opportunities to third parties. Finally, it highlights a notorious Chapter 11 plan that reads:

“It will (i) give customers the opportunity, at customers’ choice, to either recover cash at a discount or remain a ‘long’ crypto, (ii) maximize return on stakeholders, and (iii) reorganize the Celsius business.”

Close up

Celsius’ fall caused a huge stir in the market – not surprising given that there was once a giant in the lending area. The old adage about never being too big to fall has hit Celsius, and many investors are desperately hoping they will get compensation. Some people worry that it can take years before customers get their money.

The number of lawsuits has also piled up, with a Arkansas resident recently filing a class action lawsuit. Other lawsuits include one by a crypto-youtuber and, perhaps more condemningly, one by a former employee.

Chapter 11 bankruptcy is the start of a new journey for the business, which will have to work hard to stabilize the business. Investors and analysts will follow developments closely, as it serves as a case study for what is for the most part a unique event in the history of the crypto market.

Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action taken by the reader on the information contained on our website is strictly at your own risk.