Celsius Network has received approval to construct a new bitcoin mining facility, as its plans to financially restructure the business take off. The company is starting a new journey, which will be closely monitored.
Celsius Network has taken steps forward in its plans to execute financial restructuring, according to recent documents that have been published. One of the key strategies in this plan is bitcoin mining, as the company plans to spend $3.7 million to construct a new facility and an additional $1.5 million on customs and duties to import bitcoin mining rigs and has already received approval for this effort.
Celsius restructures and reevaluates
Celsius already has a mining operation in the United States. It currently operates over 43,000 mining rigs and the document says that it plans to increase this to 112,000 by the second quarter of 2023.
The document also shows Celsius’ assets dropping from $22.1 billion to $4.3 billion between March 30 and July 14, with third-party liquidations amounting to nearly $1 billion. It notes several proactive steps that Celsius took to safeguard and preserve assets, which include halting services for customers.
As for the next steps, there are four key points on the agenda. The first is to “Preserve value while negotiating a comprehensive restructuring transaction with stakeholders.” The second alludes to the bitcoin mining operations to mine btc, which will be used to fund more mining and grow its bitcoin holdings.
It’s also considering asset sales and third-party investment opportunities. Lastly, it highlights an infamous Chapter 11 plan that reads,
“It will (i) provide customers with the option, at the customers’ election, to recover either cash at a discount or remain “long” crypto, (ii) maximize returns for stakeholders, and (iii) reorganize the Celsius business.”
On close watch
Celsius’s downfall caused a huge stir in the market — unsurprising given that it was once a giant in the lending space. The old adage of never too big to fall has rung true with Celsius, and many investors are anxiously hoping that they will receive reparations. Some worry that it may be years before customers receive their funds.
The number of lawsuits has also piled up, with an Arkansas resident most recently filing a class-action lawsuit. Other lawsuits include one by a crypto YouTuber and, perhaps more damning, one by a former employee.
Chapter 11 bankruptcy is the start of a new journey for the business, which will have to work hard to stabilize the business. Investors and analysts will monitor the developments closely, as it serves as a case study for what is, for the most part, an unprecedented event in the history of the crypto market.