Celsius Network Secures Court Approval for Bitcoin Mining Operations
In Brief
Celsius Network has received approval from U.S. bankruptcy court judge for its plan to transition into Bitcoin mining.
Cryptocurrency lending company Celsius Network received approval from United States bankruptcy judge Martin Glenn for its plan to transition into Bitcoin mining. The company is now permitted to diverge from the initially approved bankruptcy plan, as the new reorganization indicates that the situations of creditors and clients have not worsened.
The judge specified that additional cryptocurrency from Celsius will be returned to customers, and customers will also be granted equity in the upcoming Bitcoin mining firm.
Celsius announced plans to establish a new publicly traded Bitcoin mining company. Additionally, there are plans to enhance the distribution of liquid cryptocurrency to account holders following Celsius’s anticipated emergence from bankruptcy in early 2024.
Celsius’ revised bankruptcy plan also releases $225 million in cryptocurrency assets that were initially earmarked for the rejected new business lines as per the United States Securities and Exchange Commission (SEC) decision. Consequently, a larger amount of cryptocurrency from Celsius will be returned to customers, in addition to equity shares in the new Bitcoin mining business.
Celsius Network Navigates Bankruptcy Challenges
In July 2022, Celsius filed for Chapter 11 protection, joining several crypto lenders facing bankruptcy amid the industry’s swift expansion during the COVID-19 pandemic. Celsius had earlier curtailed its broader aspirations, aiming to earn fees from validating crypto transactions and launching new business lines.
This shift occurred after the SEC rejected the initial plan. Consequently, Celsius withdrew from collaborations with selected outside bidders, placing mining company US Bitcoin Corp in charge of overseeing the new creditor-owned mining business.
In light of the approved transition into Bitcoin mining and the amended bankruptcy plan, Celsius Network’s strategic moves signify positive developments, indicating the company’s progress in emerging from bankruptcy.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
