The Celsius Network centralized financing platform (CeFi) is revealing plans to compensate users whose funds are not yet available for withdrawal.
In a U.S. bankruptcy court filing in the southern district of New York, the platform says it has total assets of $ 4.3 billion and total liabilities of $ 5.5 billion.
Celsius Network, which recently filed for bankruptcy, says one of the ways it could fill the $ 1.19 billion hole in its balance sheet is by selling Bitcoin (BTC) minted from its mining business.
“To bridge this gap in its balance sheet, the company plans to engage with all groups, including the official committee of unsecured creditors (which will likely include mostly users), in a productive dialogue with the hope of building consensus around the potential of debtors chapter 11 [bankruptcy] reorganization plan and, ultimately, a transaction that maximizes the value of the Company’s business for the benefit of the Company’s creditors.
One of the ways in which borrowers intend to achieve this goal is to use Bitcoin “minted” by mining to address its current cryptocurrency deficit ”.
According to Celsius Network, the cryptographic mining arm of the CeFi platform, Celsius Mining LLC, expects to generate approximately 15,000 Bitcoin by 2023 worth more than $ 310 million at the time of writing this article.
Celsius Network says it could sell some of its assets or look for a strategic investor as part of the reorganization.
“Debtors intend to present a plan that offers options to users and allows Celsius to return to normal operations. To finance recoveries from the plan, the company may sell one or more of its assets and / or consider an investment by strategic investors or third-party financiers in exchange for capital in a “reorganized” Celsius degree.
The CeFi platform says it had hundreds of thousands of active users who had account balances of more than $ 100 as of this month.
“In July 2022, Celsius had approximately 1.7 million registered users and approximately 300,000 active users with account balances of more than $ 100, and approximately $ 6 billion in assets, and was preparing to move forward with an offer. Debtor Celsius Mining LLC’s initial public offering. “
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