Celsius Network totally extinguishes its bitcoin debt

Celsius Network appears to have fully paid off its loan in Bitcoin, while the liquidation price has now dropped to zero dollars.

Celsius Network pays off 100% of its loan in BTC, and the settlement price is $0

Within a few days, cryptocurrency lending company Celsius Network repaid its loan in Bitcoin and dropped the settlement price to $0. 

BREAKING: Celsius Network has completely paid off its #Bitcoin loan. Their liquidation price has dropped to $0.00.

— Watcher.Guru (@WatcherGuru) July 7, 2022

“BREAKING: Celsius Network has fully repaid its loan in Bitcoin. The settlement price has dropped to $0.00.”

Just yesterday, in fact, Celsius fully extinguished the loan it obtained from Maker Protocol, paying the last amount of $41.2 million regarding the Bitcoin loan, thus zeroing out the debt and releasing the collateral of $453 million. 

It has been 25 days since the platform blocked access to funds for its users, putting a stop to withdrawals and transfers just to be able to settle this debt situation. 

Celsius Network: the debt payment in steps and the release of collateral

A few days ago, on July 4, Celsius reportedly repaid the first $50 million loan in BTC and also made a second repayment of the $64 million in BTC, a mere 3 hours after the first. 

On that day alone, the platform would thus repay $114 million. The following day, however, Celsius paid another $40.8 million, letting the settlement price drop to $2,722.

And here is the debt extinguishment with the final $41.2 million payment, settled in DAI, Maker Protocol’s stablecoin. 

DeFi explore data show that this resulted in Maker releasing to Celsius 21,962 WBTC, which had been pledged as collateral for the loan. The WBTC released has a value of about $453 million.

The price of Celsius (CEL)

At the time of writing, the Celsius token (CEL) has seen a 10% pump in the past seven days and a 13% price drop in the past 24 hours. Its current price is $0.71. 

Perhaps it will take some time now for the market to restore its confidence in the platform and its native token, a time that would begin with the reopening of withdrawal and transfer operations on Celsius Network. 

Indeed, despite having recovered its collateral from Maker, the crypto lending company has not yet revealed when it will reopen access to funds to its users.