Celsius Seeks a Way Out of Bankruptcy with Bitcoin Mining

Faced with several lawsuits, the network is looking for solutions in the crypto sector.

Celsius Seeks a Way Out of Bankruptcy with Bitcoin Mining

Celsius Network confirmed that the mining of bitcoin should help the company’s restructuring. This event took place at the U.S. Bankruptcy Court hearing in Manhattan. Judge Martin Glenn granted approval to Celsius for the construction of a new mining facility, whose costs are estimated at roughly 5.2 million USD. The costs will include the construction of the facility as well as bitcoin mining rigs.

On July 13th, 2022, Celsius filed for Chapter 11 protection, while being in debt of 1.19 billion USD on their account. Celsius lawyer, Patrick Nash presented to Glen that the key to the company’s reorganization is Bitcoin mining and provides a way to repay customers whose assets were frozen weeks prior. He added:

"In a world where the crypto market rebounds, the mining business has the potential to be quite valuable."

The freezing of customer accounts was an attempt to decrease Celsius’ losses and preserve the business. The mining should hopefully bring Celsius’s tarnished reputation back into the good faith of its customers.

The doubt is now arising amongst the investors, who are speculating about a fight for the newly mined Bitcoins. The two sides of the conflict are the Celsius customers and the UK subsidiary that helped to raise the mining fund. U.S. Department of Justice’s bankruptcy watchdog states that there might be customers who will object the Celsius’s bitcoin mining project's importance when their own fund recovery is in doubt.

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