Celsius Embraces Bitcoin Mining
The crypto lending platform Celsius, which filed for Chapter 11 bankruptcy in July 2022, has made a significant move by deciding to unstake over 30,000 ETH, potentially alleviating selling pressure on Ether (ETH) prices. This strategic decision comes as Celsius shifts its focus to bitcoin mining during the ongoing restructuring, aiming to address concerns that have contributed to ETH’s recent underperformance. On Jan. 5, Celsius announced this important move.
Unstaked ETH to Address Costs
According to blockchain analytics firm Nansen, a substantial portion of the ETH in the pending withdrawal queue is linked to Celsius, amounting to approximately 206,300 ETH, valued at around $468.5 million at current market prices. 19,906 validators are eagerly awaiting a full exit, with Celsius having already withdrawn 40,249 ETH to date. Wallets linked to Celsius have staked over $151 million in Ether, with an annualized yield of 4%-5%, potentially contributing to negative sentiment towards the token. Celsius moved over 30,000 ETH to custodian Fireblocks, with a portion deposited on Coinbase.
Hot Take
Celsius’ move to unstake over 30,000 ETH is a significant step in its restructuring process, potentially alleviating selling pressure on Ether prices while enabling the company to address specific costs incurred during the Chapter 11 bankruptcy filing. This move could positively impact customers waiting for the recovery plan distribution while also adding another layer to the evolving dynamics of the market.
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