May 31, 2023 2:24 am
Celsius Bankruptcy: Crypto Lender Seeks Funds from Bitmain
Crypto lender Celsius has filed for bankruptcy and is now seeking to raise $14 million from Bitmain mining vouchers before they expire. The move comes after the company joined forces with Core Scientific, another crypto mining firm, in an attempt to offload their assets and repay creditors.
Celsius, which was founded in 2017, has been a major 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 company’s financial woes have been further compounded by the COVID-19 pandemic.
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 of time or else they become invalid.
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 some much needed relief for those affected by the company’s bankruptcy filing.