Categories: Bitcoin Latest News

Bankrupt Crypto Lender Celsius Gets Cash-Injection Offers, Approval to Sell Mined Bitcoin

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.

Read more about

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.

Recent Posts

Tether in Talks to Support Cantor Fitzgerald’s Planned Bitcoin Lending Program: WSJ

Howard Lutnick, chairman of Wall Street trading firm Cantor Fitzgerald, is in discussions with Tether's…

44 seconds ago

MicroStrategy Is a Bitcoin Magnet Pulling in the Earth’s Capital Reserves: Bernstein

MicroStrategy's (MSTR) bitcoin (BTC) treasury model is unparalleled and the company is expected to attract…

45 seconds ago

Bitcoin Options Worth $9B Expire Friday, Traders May be Thankful for the Post-Thanksgiving Volatility

The crypto market should see a pick up in volatility at the end of this…

47 seconds ago

Michael Saylor’s MicroStrategy Makes Mammoth BTC Purchase, Adding 55,500 Tokens for $5.4B

Bitcoin Development Company MicroStrategy (MSTR) added 55,500 of the largest cryptocurrency for $5.4 billion, bringing…

49 seconds ago

First Mover Americas: Bitcoin Regains $98K After Weekend Slump

Starting next Monday, First Mover Americas will become Crypto Daybook Americas, your new morning briefing…

50 seconds ago

Bitcoin Buying Plans Are Supercharging Stocks. Is This a Michael Saylor Redux — or Another ‘Long Island Iced Tea’ Fad?

What does the ragtag group including a fitness equipment maker, biopharmaceutical company and producer of…

53 seconds ago