Celsius Network is undergoing a transformation, emerging as a Bitcoin mining entity to settle debts and move past bankruptcy.
The crypto lender, Celsius Network, received judicial consent to morph into a Bitcoin mining business as a strategy to repay customers. This change is designed to resolve the frozen funds dilemma faced by account holders for more than a year.
A U.S. Bankruptcy Court in New York endorsed this plan last Thursday, marking a significant change in direction post-financial turmoil for Celsius. The company’s spokespersons hint at starting to return assets by the beginning of the next year.
Endorsed by its creditors, the company’s plan charts a course out of Chapter 11 bankruptcy, overshadowing previous allegations of mismanagement against some former executives.
Yet, some customers view the pivot to Bitcoin mining with caution, and regulatory hurdles remain. Celsius has underscored the need for the SEC’s green light, noting that if mining operations don’t advance, they might pivot to liquidation instead.
A judge has urged the SEC for a swift verdict on Celsius’s rebranding as a publicly-traded Bitcoin mining firm.
The court’s nod to Celsius’s exit strategy concludes a weeks-long trial, where customers critiqued the new leadership and debated the bankruptcy proposal and its inherent costs. The valuation of Celsius’s CEL token, integral to allocating digital assets and shares in the new mining operation to creditors, remains a disputed issue.