Celsius Network Pivots to Bitcoin Mining After Bankruptcy Appeal Approval
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Cryptocurrency platform Celsius sets course with Bitcoin Mining-Only operations after bankruptcy court approves appeal.
Cryptocurrency platform Celsius Network, is set to undergo a significant transformation. The company, which faced financial challenges leading to its Chapter 11 bankruptcy filing, is transitioning to focus primarily on Bitcoin mining operations.
The transition to a mining-centric operation comes after Celsius received crucial feedback from the Securities and Exchange Commission (SEC) on its bankruptcy appeal. Celsius Network will move forward with plans to register shares in a new publicly traded Bitcoin mining company, predominantly owned by Celsius customers.
This new direction differs from the initial proposal to create a company with Fahrenheit, LLC, due to regulatory requirements. Celsius is actively discussing the future management of the new Bitcoin mining company, known as “Mining NewCo.”
The company anticipates lower management fees and increased liquid cryptocurrency distributions for creditor payouts, compared to the previously proposed Fahrenheit NewCo.
Celsius‘ Future Plans and Creditor Distributions
In the coming weeks, the company will seek bankruptcy court approval for modifications to its plan to align with the new Mining NewCo transaction.
Despite these changes, the company does not foresee the need to resolicit the plan and still expects to commence creditor distributions by January 2024. Legal counsel, financial advisors and restructuring advisors are actively supporting Celsius through this transition.
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