CFO Celsius Confirms The Company Can Still Operate Until The End Of 2022

Celsius’s CFO has denied accusations that the company’s cash flow will dry up by October. He insists the company still has $81 million in daily mining and can stay afloat until the end of 2022.

As the bankruptcy case against Celsius Network has progressed, some intriguing revelations in the court documents have been made. The most recent of these is that the business is having trouble paying for its ongoing operations. The corporation withdrew its request to rehire its former CFO Rod Bolger at a salary of $92,000 per month, and now the company’s new CFO Chris Ferraro has stepped forward to address rumors that the company will run out of money in October.

The CFO of Celsius addressed the allegations that the company’s cash flow is at risk during a recent discussion with creditors. Ferraro, who was representing CEO Alex Mashinsky on the call, assured creditors that the business still has enough cash to cover its operating costs.

Ferraro claimed that Celsius still had the funds to operate through the end of 2022, as opposed to running out of money between September and October. The CFO disclosed that Celsius still had $81 million available for use in ongoing operations.

He responded that the $61 million in loans for the troubled lending platform were being provided by the cryptocurrency exchange Bitfinex when asked where the money would be coming from. Additionally, it anticipated that selling some of its mining rigs and avoiding taxes would result in a $20 million savings.

While going through the bankruptcy process, Celsius has been able to avoid taking on new loans, but it appears to have hit its limit. This makes sense given that borrowing money while in bankruptcy may be terrible for a business due to the complexities involved.

The Celsius Network subscribers are currently anticipating the outcome of the case with bated breath. Users will, however, have to wait a while for this based on the historical bankruptcy cases of cryptocurrency companies.

Recently, the company continued to turn to crypto mining as a way to try to repay users. Back in July, the lending platform explained that it plans to increase its yearly BTC production to 15,000. This plan, although not entirely bad, would definitely see the platform take several years to pay back all debt. It doesn’t help that the company remains cash flow negative and would need to pay running costs to keep operations afloat.

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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