Celsius, which collapsed under the influence of the crisis in the crypto money market in 2022, wants to make a fresh start. Accordingly, the bankrupt cryptocurrency company is currently planning to issue a new token that will reimburse its creditors to get out of bankruptcy.
Cryptocurrency company plans to issue a new token!
cryptocoin.comAs you follow, Celsius was one of the bankruptcies that marked 2022 in the crypto market. According to statements made by the crypto company in court on Tuesday, the crypto loan firm plans to issue a new token to pay creditors as part of its restructuring and exit bid. It is considering doing this as an upcoming regulated cryptocurrency platform.
During a court hearing, the company’s attorney, Ross M. Kwasteniet, stated that reorganizing Celsius as a properly licensed public company would bring in more money for creditors than selling hard-to-liquid assets at prices currently available. Any restructuring proposals will initially be voted on by creditors, which includes customers of Celsius who store cryptocurrencies on the company’s platform. U.S. Bankruptcy Judge Martin Glenn will then consider the results of that vote when deciding whether to accept the proposal.
According to Ross M. Kwastenet, after the crypto loan giant filed for bankruptcy last year, the company sought to sell itself as a functioning company while seeking bids for its assets. However, the offers for individual assets are not attractive enough. “The bids for individual assets were found to be unconvincing,” Kwastenet said. Instead, Celsius negotiated with various creditor organizations about establishing a new firm and distributing a new token to creditors as part of its compensation plan.
Celsius plans want to start fresh
Ross M. Kwasteniet stated that the cryptocurrency company will submit court documents this week detailing its goals. He also added that any new business will be structured on assets consisting of tens of thousands of cryptocurrency mining machines, plus a portfolio of loans and other investments. Speaking at the hearing on crypto mining, the company’s financial advisor highlighted that the industry has witnessed exponential growth over the past few months.
Celsius will store 20,000 mining machines
Meanwhile, Celsius’ mining arm will temporarily store 20,000 rigs from Core Scientific and is optimistic about finding new hosting locations. The company has already started the process to take back 37,500 machines after a judge allowed Core Scientific to shut down the machines earlier this month. Chris Ferraro, who serves as head of restructuring and interim CEO, said they expect the process to be completed by mid-March. “There are hosting options in the market that will allow us to continue mining with positive operating cash flows and significant growth,” Ferraro said at the hearing.
Celsius had a conflict with Core Scientific, which filed for bankruptcy last month, over the terms of a hosting agreement. The former company had filed a request in September to automatically force a stay. However, Core claimed that Celsius ‘used Chapter 11 to stop certain fees from being paid’. Last month, Core Scientific gave the green light from bankruptcy judge Celsius to shut down all of its machines.
Ferraro said that Celsius’s liquidity has increased with the recent surge in Bitcoin price. After peaking in the autumn, there was also a ‘tremendous drop’ in energy costs. Bitcoin has recently been trading at around $23,000, the highest level since last summer.
The company is currently issuing 7 to 8 BTC per day with a margin of 25% to 30% with 27,500 machine hashing transactions. Ferraro said 2,150 pieces of equipment were removed from Core Scientific’s facilities, with 3,750 this week and another 2,700 next week. The company will send 6,000 machines to a site in Texas and 10,000 to the site of Bitcoin miner Mawson Infrastructure in Pennsylvania.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.