- Celsius Network, on Monday, presented a plan of action to their stakeholders.
- According to the presentation, Celsius Network expects to push forward its balance sheet so that it can fund mining operations.
- The presentation gave the Celsius customers a choice. Read ahead to find out.
The Crypto Mining Decision
Celsius Network, one of the famous crypto lenders that recently made news regarding battling insolvency, presented a plan of action on Monday through their presentation. A major reason for taking this step is calming the stakeholders down, which is possible through restructuring and stabilizing their business.
According to the presentation, Celsius Network expects to push forward its balance sheet so that it can fund mining operations. This will be made possible by using minted Bitcoin from its mining subsidiary. We all know that the crypto firm underwent a huge battle for insolvency. In court, Pat Nash claimed that Celsius Network is currently mining around 14.2 Bitcoins daily. This number is expected to increase their operations to mine around 10,100 Bitcoins in 2022. Pat is the lead attorney of the crypto firm.
Sophie’s User’s Choice
Let’s say Celsius Network, for $21,900, succeeds in minting 10,100 Bitcoins for themselves. They will still be far below their deficit of $1.19 billion. Their minted bitcoins will be valued at $221 million. They will be supported financially; given the case, they will sell their mining unit. The crypto firm has decided to explore “different asset sales and third party investment opportunities”. This will help them meet their liabilities, according to the presentation.
Following are some of the statistics of their bank filings:
- Celsius Network has assets worth $4.3 billion.
- Most of the assets are illiquid(cannot be easily liquidated).
- Liabilities surmount to $5.5 billion.
- Out of the liabilities, $4.7 billion are user liabilities.
The presentation gave Celsius customers a choice. They is that either they can opt to receive their cash settlement at a discounted price, or they could choose to be bullish and remain long on crypto. But wait! It’s not over yet. Recently, Nash argued that in court, the customers of Celsius Network gave the responsibility of their hard-earned assets to the crypto firm, which is, hence, unsecured creditors. This means that the investment firm’s users might face the brunt of its collapse.
Source: https://www.thecoinrepublic.com/2022/07/19/celsius-network-attempting-to-re-instate-trust-of-their-stakeholders/