The troubled crypto lending firm is moving toward its existing mining business expansion to make its operations live.
Celsius Network is a crypto lending platform. In short, we can say that the Celsius platform provides an option for crypto holders to earn an extra yield on holding. During the extreme market situation, Celsius faced huge problems & as a result platform halted its services on 12 June 2022. Now the Celsius team is trying to follow every possible way to get out of this situation.
According to reports, Celsius successfully received regulatory approval to set up its new bitcoin mining facility, to restructure the business take-off. This time the company is planning to step toward a new journey, which will be closely monitored.
Recently published documents by Celsius confirmed that it will invest $3.7 million to construct a new Bitcoin mining facility and an additional $1.5 million on customs and duties to import bitcoin mining machines.
Celsius: an old Bitcoin miner company
Celsius company already has its hand in Bitcoin mining operations. In the United States, Celsius runs 43,000 mining rigs and the document says that the company plans to increase this figure to around 112,000 by Q2 2023.
Documents noted that the company lost huge assets holdings between March 30 and July 14. The company’s assets dropped from $22.1 billion to $4.3 billion.
In this situation, the company is planning to bring some net profit through Bitcoin mining and also planning to sell its assets & Invest in third-party companies.
The last plan of this company is to offer an option for the customers to choose either cash at a discount or remain “long” crypto.
Chapter 11 recovery plan reads:
“It will (i) provide customers with the option, at the customers’ election, to recover either cash at a discount or remain “long” crypto, (ii) maximize returns for stakeholders, and (iii) reorganize the Celsius business.”