Celsius Outlines Next Steps as Bankruptcy Proceedings Begin

The insolvent crypto lender has said that it will give customers an option of staying "long crypto" or receiving a discounted cash settlement.

AccessTimeIconJul 18, 2022 at 1:06 p.m. UTC
Updated May 11, 2023 at 4:22 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A Celsius Network presentation ahead of Monday afternoon's bankruptcy court hearing offers a snapshot of the company's current situation and broad picture of what a restructuring might look like.

  • As reported last week, Celsius has $4.3 billion in reported assets which includes $600 million in the now depleted CEL token, as well as $5.5 billion in liabilities.
  • Among next steps, the company is hoping its sizable mining subsidiary can use minted bitcoin (BTC) to both grow its balance sheet and fund mining operations.
  • Celsius is also considering "asset sales and third-party investment opportunities" as a way to raise capital.
  • The company added that it will confirm a Chapter 11 plan that will provide customers an option of receiving a discounted cash settlement, or the option to remain "long crypto," which could involve distributing CEL tokens.
  • The CEL token is currently trading at $0.80 with a market cap of $191 million, despite Celsius claiming that it owns $600 million worth of that native token.
  • The presentation comes ahead of the company's scheduled appearance in front of a bankruptcy judge on Monday at 2 p.m. ET.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.