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 Jul 18, 2022 at 4:21 p.m. UTC

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

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.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

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

CoinDesk - Unknown

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

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC