Celsius Net Liabilities Exceed $2.8 Billion: New Bankruptcy Filing

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  • Celsius released its budget for the next three months, allocating $13.9 million to payroll and $57.3 million to mining
  • As of July 29, Celsius said it owed a total of $6.7 billion in nominal debt against just $3.8 billion in assets.

As its bankruptcy proceedings continue, crypto lender Celsius has released its budget plans for the next three months.

In court documents filed Aug. 14, Celsius said it expects its net cash flow to reach negative $137.2 million by the end of October 2022.

As of July 29, 2022, Celsius said it owed a total of $6.7 billion in nominal debt. The lender currently has $3.8 billion in token assets, including $761 million of its own token CEL, bringing its shortfall to $2.84 billion.

The lender plans to rack up $85.4m in operating expenses through the end of October, including $13.9m to pay employees and $57.3m for crypto mining operations -currency, which CEO Alex Mashinsky hopes will generate sufficient revenue for the company in the future.

Restructuring expenses alone will cost $33.5 million Celsius.

Celsius expects its cash to fall to less than $33.9 million by the end of October.

Mashinsky’s plans for Celsius’ mining operations to help the company get back on its feet are not being welcomed by regulators or creditors.

The Texas State Securities Board (TSSB) said earlier this month that it does not want Celsius to sell mined bitcoin because the lender has not explained how it plans to benefit creditors by offloading its crypto.

Additionally, the official committee representing Celsius’ unsecured creditors decided to block its attempts to sell mined cryptocurrency, writing in an August 11 filing in court that Celsius’ plans to monetize its mining operations are unclear.

Sunday’s court filing comes a month after Mashinsky released his statement in support of the Chapter 11 bankruptcy filing.

“The company made what, in hindsight, turned out to be some poor asset deployment decisions,” reads the July 14, 2022 statement.


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  • Casey Wagner

    blockages

    Senior Reporter

    Casey Wagner is a New York-based business journalist who covers regulation, legislation, digital asset investment firms, market structure, central banks and governments, and CBDCs. Prior to joining Blockworks, she reported on markets at Bloomberg News. She graduated from the University of Virginia with a degree in media studies. Contact Casey via email at [email protected]


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