Celsius wants to continue to sell mined Bitcoin
Crypto firm Celsius Network LLC, which has filed for Chapter 11 bankruptcy, is seeking to continue to sell mined Bitcoin. This becomes apparent from documents filed by the company with the New York Southern Bankruptcy Court on July 25, 2022.
The debtors seek entry of an order permitting the Debtors, on a postpetition basis and consistent with past practice and in the ordinary course of business, to continue to sell, pledge, transfer, assign, or otherwise monetize the Bitcoin generated from their mining activity.
As of the Petition Date, Celsius Mining LLC owned 80,850 mining “rigs,” 43,632 of which were operational, generating approximately 14.2 Bitcoin per day. In 2021, Celsius generated a total of 3,114 Bitcoin and, for 2022, it projected generating more than 10,100 Bitcoin for the year.
Prior to the Petition Date, Celsius planned to expand its mining capacity to approximately 120,000 operational mining rigs. For 2023, Celsius projected that it would generate approximately 15,000 Bitcoin for the year, if it stayed on track with its plan to expand mining capacity.
Celsius says:
“The Debtors, in an exercise of their reasonable business judgment, believe that the continued monetization of its mined Bitcoin consistent with past practice and in the ordinary course of business is an efficient way to generate liquidity to help fund the Debtors’ operations”.
Meanwhile, the Court continues to receive dozens of letters from angry clients of Celsius every day. Overall, the message that these letters convey is that the Court should help the investors rather than Celsius’s management and employees.