Crypto Lender Celsius Seeks $14 Million from Bitmain Mining Vouchers
Crypto lender Celsius has filed for bankruptcy and is seeking to raise $14 million from Bitmain mining vouchers before expiring. The move comes after the company joined forces with Core Scientific, another crypto mining firm, to offload their assets and repay creditors.
Background on Celsius
Celsius, founded in 2017, has been a significant player in the cryptocurrency lending market. It allowed users to borrow or lend digital assets using its platform but struggled to stay afloat amid the bear market of 2018-2019. The COVID-19 pandemic has further compounded the company’s financial woes.
Seeking Relief Through Bitmain Mining Vouchers
The funds generated from selling the Bitmain mining vouchers will be used to repay creditors who are owed money by Celsius. The company has previously sought debt restructuring options from other lenders, but those efforts have not yet borne fruit.
Bitmain is one of the largest manufacturers of cryptocurrency mining hardware, and their vouchers are often used as a form of payment for services rendered by miners. The vouchers have an expiration date and must be used within a certain period or become invalid.
Looking for Creative Solutions
This latest move shows that Celsius is determined to stay afloat despite its financial struggles and is looking for creative ways to generate funds and repay its creditors. Whether or not this strategy proves successful remains to be seen, but it could provide much-needed relief for those affected by the company’s bankruptcy filing.
Celsius’s effort to raise funds through the sale of Bitmain mining vouchers highlights the challenges faced by crypto lenders in the current market conditions. With the ongoing bear market and the impact of the COVID-19 pandemic, many crypto companies are struggling to stay afloat and are looking for innovative solutions to keep their doors open.
The crypto community will watch the outcome of Celsius’s efforts to raise funds through the sale of Bitmain mining vouchers, as it could provide insight into the future of the crypto lending industry and the challenges it may face in the coming months and years.