Post ContentRead MoreCoinDesk
Bankrupt cryptocurrency lender Celsius Network, which disclosed Monday that it was running low on money, said it has gotten several proposals to inject cash into the company and won approval from a U.S. judge to sell bitcoin (BTC) that it mines.
Celsius lawyer Josh Sussberg disclosed the receipt of cash-injection offers during a Tuesday bankruptcy hearing but didn’t say how big the offers were. Moving hastily on this is “mission critical” for Celsius, Sussberg said. It’s customary for companies reorganizing in U.S. bankruptcy court to seek financing to keep their operations going.
Celsius, which fell into bankruptcy this year after the crypto rout prompted it to prevent customers from withdrawing their money, needs liquidity. Financial projections in a court filing Monday showed the company will run out of cash by October and holds $2.8 billion less in crypto than it owes to depositors.
Before filing for bankruptcy, Celsius sold bitcoin that it mined to help fund its operations. Judge Martin Glenn’s approval Tuesday opens the door for that to continue. A document filed prior to the hearing showed that Celsius mined $8.7 million worth of bitcoin in July; the company’s operational and capital costs exceed that.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
The current Bitcoin (BTC) rally could extend until mid-2025, with a potential price peak before…
Bitcoin price extended gains above $90,000. BTC is now consolidating gains near $90,000 and might…
Bitcoin (BTC) has hit new highs in recent days, with many users of crypto betting…
In founding editor Bradley Keoun's last issue of The Protocol, CoinDesk's weekly newsletter devoted to…
Bitcoin has reached a new all-time high of $90,243 following a week of relentless upward…
Predicting Bitcoin's price has always been a hot topic for investors. Matt Crosby, lead market…