Renowned cryptocurrency lender Celsius has received significant approval to go ahead with its plans to build a bitcoin mining plant as it tries to find ways to bring it back to financial stability.
Between March 30 and July 14 this year, the value of Celsius’ assets fell from $22.1 billion to $4.3 billion. $1 billion in third-party liquidations.
Celsius was brought down by the collapse of Terra Luna and has since struggled to remain something that forced it to file for Chapter 11 bankruptcy in the US as it tried to restructure. Prior to filing for Chapter 11, Celsius had tried a number of measures to settle its DAI loan with Away, including asking ETH tokens from the banker to provide WBTC as collateral. Celsius had borrowed 100 million DAI tokens on Aave, forcing Marker DAI to disable DAI supply to Aave in order to avoid further exposure to Celsius.
The plan to build a bitcoin mining facility is part of Celsius’ plan to stabilize the company after the current financial crisis.
However, Celsius was recently sued for using customer deposits to hedge the price of the CEL token, while failing to properly hedge the risks. Therefore, the new venture to build a BTC mining plant will be widely watched, given that Celsius has yet to resume withdrawals.
$3.7M invested for new bitcoin mining plant
Celsius intends to invest $3.7 million in building a new bitcoin mining facility and an additional $1.5 million in importing mining equipment and paying customs duties.
Celsius already has a mining plant in the US which currently operates more than 43,000 mining rigs. By adding a new mining facility, Celsius intends to increase the number of mining rigs to 112,000 by the second quarter of 2023.
The increased mining operations will in turn increase the number of bitcoins that Celsius will have which the company believes will be a source of finance.