According to recently revealed documents, Celsius Network has made progress in its intentions to implement financial reorganization. One of the primary tactics in this plan is bitcoin mining, for which the company wants to spend R63 million on a new facility and an extra R25 million on customs and duties to import bitcoin mining rigs, and for which it has already received approval.
Celsius already operates a mine in the United States. It presently operates around 43,000 mining rigs and wants to raise this to 112,000 by the second quarter of 2023, according to the document.
Celsius’ assets fell from R375 billion to R73 billion between March 30 and July 14, according to the document, including over R16.9 billion in third-party liquidations. It mentions many preemptive efforts taken by Celsius to safeguard and preserve assets, including the suspension of consumer services.
There are four main items on the agenda for the next phases. “Preserve value while negotiating a comprehensive restructuring deal with stakeholders,” says the first. The second refers to bitcoin mining operations that will be utilized to fund more mining and increase its bitcoin holdings.
It’s also thinking about asset sales and third-party investment. Finally, it mentions a controversial Chapter 11 plan that reads,
“It will I give clients the option to recover either cash at a discount or remain “long” crypto at their discretion, (ii) maximize returns for stakeholders, and (iii) reorganize the Celsius business.”
Celsius’s demise sparked a tremendous uproar in the market, which was unsurprising given that company was previously a lending giant. The old phrase “you’re never too big to fall” has come true with Celsius, and many investors are hoping for compensation. Some are concerned that it will take years for clients to collect their payments.
A class-action complaint was recently filed by an Arkansas resident, adding to the growing number of lawsuits. Another complaint was filed by a crypto YouTuber, and perhaps more damningly, by a former employee.
Chapter 11 bankruptcy marks the beginning of a new journey for the company, which will have to work hard to get back on track. Investors and analysts will closely observe the developments, as they serve as a case study for what is, for the most part, an unprecedented occurrence in the history of the cryptocurrency market.