Bankrupt Crypto Lender Celsius Hope To Raise $14 Million By Selling Bitmain Mining Vouchers

Key Points:

• Bankrupt cryptocurrency lender Celsius seeks to raise $14 million by selling Bitmain mining vouchers. Bitmain purchases 10%-30% discount coupons, as well as points generated when buyers pay in installments.
• Celsius’ vouchers have a total face value of more than $48 million.
• The company, along with mining company Core Scientific, is trying to sell the assets before they come due, with the funds used to repay creditors.

By selling Bitmain mining vouchers (discount coupons), bankrupt cryptocurrency lender Celsius hopes to generate $14 million.

Coupons for discounts of 10% to 30% as well as points produced when customers pay in installments, are purchased by Bitmain. The face value of Celsius’s coupons is more than $48 million in total. The proposed Bitmain coupon sale is modeled after a similar arrangement made by bankrupt bitcoin miner Core Scientific, which was given permission to sell Bitmain coupons on February 1 by a court in the Southern District of Texas in an effort to earn $1 million.

A legal filing was made on behalf of Celsius, stating:

“The Debtors, in a sound exercise of their business judgment, believe that current market conditions and the time to expiration offer the Debtors the greatest likelihood of obtaining maximum value for the Bitmain Coupons and the Bitmain Credits.”

According to the filing, the market value of the Bitmain Coupons declines as their expiration dates is near until they are worth nothing.

The business announced that it was in talks with six prospective purchasers of the coupons, who had been found through connections at mining brokers Bitooda, Bitmain, and Celsius.

In July of last year, Celsius filed for bankruptcy. As of right now, the company is scrambling to come to terms with a wind-up plan that may involve creating a recovery organization that provides liquid cryptocurrency to creditors.

Previously, Coincu reported that Celsius had updated the upcoming withdrawal process for certain assets in certain margin accounts. Before that, eligible users will be required to update their Celsius account with some required information. Qualified margin users can withdraw approximately 94% of the qualified margin assets.

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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Harold

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