Celsius Network Unstakes Ethereum Holdings to Distribute Assets
Now-defunct cryptocurrency lender Celsius Network has announced its plans to unstake its Ethereum (ETH) holdings as part of its efforts to distribute assets to creditors. The company intends to carry out a significant unstaking event in the next few days, using the existing ETH holdings to offset costs incurred during the restructuring process.
Back in July 2022, Celsius Network faced a liquidity crisis that led to a freeze on withdrawals and ultimately filed for Chapter 11 bankruptcy protection. Since then, the company has been working towards a settlement plan that allows qualified users to withdraw 72.5% of their crypto holdings until February 28.
Celsius Shifts Focus to Crypto Mining
Last month, Celsius was granted permission to proceed with an alternative plan involving the creation of a public company dedicated solely to Bitcoin mining. Creditors will receive a portion of their recovery through shares in the upcoming Bitcoin mining company, known as MiningCo, which will be operated by Hut 8 under a four-year mining management contract.
Hot Take: Celsius Network’s Strategy for Asset Distribution
Celsius Network’s decision to unstake its Ethereum holdings demonstrates its commitment to distributing assets to creditors. By utilizing these holdings, the company can offset costs incurred during the restructuring process. Additionally, Celsius Network’s shift towards crypto mining with the creation of MiningCo provides an alternative avenue for creditors to recover their funds. This strategic move allows creditors to benefit from the success and growth of the mining operations. With these developments, Celsius Network is taking proactive steps towards resolving its liquidity crisis and providing relief to its users.
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