Crypto lending platform Celsius filed for bankruptcy in June. According to a previous report, it is expected to cost $33 million for business restructuring in the past three months, and it may cost every month for the next few months. $46 million to keep the company afloat, and in response to expenses, Celsius applied to a U.S. court to use the business-mined bitcoin in the portion of the property, which has filed for bankruptcy protection, and sell the assets to survive the crisis.
According to Coindesk, at the bankruptcy hearing held by the U.S. court yesterday (16), it has announced its decision to approve its sale of mining bitcoins because the company has already secured part of the financing commitments.
According to Celsius’ financial report submitted to the court on the 15th Beijing time, if Celsius does not take any action, it will generate a negative cash flow of 137.2 million in October, which will eventually become a net liability.
The financial report provided by Celsius recently said that in July, nearly $8.7 million of bitcoin was mined in the mining operation. The company’s cost still far exceeds this figure but selling bitcoin may alleviate the urgent need.
Celsius plummeted after hearing the news
Interestingly, before the financial report submitted to the court on the 15th was exposed, the token Celsius suddenly experienced a surge, from $1.7943 on August 10th to $4.4602 on August 15th, an increase of 148.57%. But as the court’s financial report came to light, it plummeted, and the price was quoted at $2.6633 at the time of writing, a drop of as much as 40% from the highest point.
Post time: Sep-10-2022