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Celsius Is Allowed to Sell $7.4 Million Value of Bitmain Coupons

celsius is allowed to sell $7.4 million value of bitmain coupons

Following a bankruptcy judge’s ruling, debtors of crypto lender Celsius Network have been granted the power to liquidate $7.4 million worth of Bitmain coupons for mining firm purposes. In his Feb 16 court filing, US Bankruptcy Judge Martin Glenn decreed that this course of action would be most beneficial to both Debtors’ estates and their creditors alike; however, according to the stipulations set forth by an unsecured creditor committee, they do not need to take such measures if they are opposed.

Bitmain Coupons Made It Possible To Buy Bitcoin Mining Rigs At Discounted Price

Christopher Ferraro, Interim Celsius CEO, proclaimed in a statement on February 9th that debtors intended to sell Bitmain coupons for approximately $7.4 million. These particular vouchers allowed parties to acquire mining rigs from Bitmain with up to 30% off their upcoming purchases.

At the time of sale, Ferraro proclaimed that while $7.4 million was a considerable reduction from the Bitmain Coupons’ total face value of nearly $37 million, it aligned with contemporary market prices and would be more beneficial than letting them expire worthless in their possession. Additionally, through testing various similar assets for sale on the market, they projected that selling Bitmain Coupons at an extensive discount to their original value is necessary for success.

this new decision will support celsius restructuring plan

This New Decision Will Support Celsius Restructuring Plan

Judge Glenn’s decision followed the debtors from Celsius Crypto Lending presenting a restructuring plan on Feb. 15 that included NovaWulf Digital Management as their sponsor and offering between $45 million and $55 million in direct cash contributions to create the newly restructured company.

As corporations across the U.S. face proceedings in bankruptcy court post-2022 market crash, crypto exchange FTX is additionally caught up in the federal investigation — having recently issued subpoenas to past insiders such as ex-CEO Sam Bankman-Fried.

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