Celsius Starts Restructuring And Gets The Green Light For A Bitcoin Mining Facility

A new bitcoin mining facility will soon be built by Celsius Network, as the company’s ambitions to restructure its finances advance. The company is embarking on a new adventure that will be widely watched.

According to recently released documents, Celsius Network has advanced its intentions to carry out financial restructuring. One of the main measures in this plan is bitcoin mining, for which the company has already acquired approval and wants to invest $3.7 million in building a new facility and an extra $1.5 million in customs and fees to import bitcoin mining equipment.

In the US, Celsius already has a mining operation. According to the statement, it presently runs more than 43,000 mining rigs and intends to raise this number to 112,000 by the second quarter of 2023.

Additionally, between March 30 and July 14, the assets of Celsius decreased from $22.1 billion to $4.3 billion, with approximately $1 billion in third-party liquidations being recorded in the document. It lists a number of preventive measures Celsius took, such as stopping client services, to protect and preserve its assets.

There are four important items on the agenda regarding the subsequent stages. The first is “Preserve value while negotiating with stakeholders a comprehensive restructuring transaction.” The second references to the bitcoin mining operations that will be utilized to generate bitcoin and increase the amount of bitcoins owned.

Additionally, it’s thinking about asset sales and potential outside investment prospects. Finally, it draws attention to a notorious Chapter 11 plan that says:

“It will (i) provide customers with the option, at the customers’ election, to recover either cash at a discount or remain “long” crypto, (ii) maximize returns for stakeholders, and (iii) reorganize the Celsius business.”

Given that Celsius was previously a market leader in the lending industry, its demise provoked a significant uproar in the marketplace. With Celsius, the proverb “you’re never too big to fail” has come true, and many investors are anxiously anticipating compensation. Some people worry that it might take years for clients to get their money.

The number of lawsuits has also piled up, with an Arkansas resident most recently filing a class-action lawsuit. A cryptocurrency YouTuber and, perhaps more damningly, a former employee have both filed lawsuits, among others.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Patrick

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