Celsius Unlocks Ethereum Holdings to Repay Creditors
Over the past week, Celsius transferred 40,000 Ethereum, equivalent to over $90 million, to its major creditors Coinbase and FalconX. However, the company still holds around 59,000 ETH in its Staked ETH account, valued at over $133 million. This move is part of Celsius’s strategy to unlock a significant portion of its Ethereum holdings and allocate assets to its creditors as part of the bankruptcy proceedings.
Unstaking Ethereum for Liquidity
Celsius, which filed for Chapter 11 bankruptcy protection in July 2022, has been facing a liquidity crisis exacerbated by the cryptocurrency market downturn. By unstaking Ethereum, the company aims to generate the necessary liquidity to cover restructuring costs and ensure timely repayment to creditors.
Court Approval and Objections
On Boxing Day, the court approved Celsius Network’s “MiningCo Transaction,” a crucial component of its restructuring plan. Despite objections from various parties, including the United States Trustee and individual creditors, the court ultimately sanctioned Celsius’s plan. These recent developments mark significant progress in Celsius’s efforts to manage its bankruptcy and restructure its operations.
Hot Take: Unlocking Ethereum for Creditor Repayment
Celsius’s decision to unlock a substantial amount of Ethereum holdings is a strategic move aimed at repaying its creditors during the bankruptcy proceedings. By generating liquidity through unstaking, Celsius can navigate the costs associated with restructuring and ensure timely payments. This step showcases Celsius’s commitment to resolving its financial challenges and working towards a sustainable future.
By
By
By
By
By