Celsius Network Faces the Music
In yet another twist in the saga of Celsius Network, the beleaguered crypto lender is gearing up to sell off $1.3 million worth of mining equipment as part of its ongoing bankruptcy proceedings. Yes, folks, it’s time for some mining rigs to find a new home.
Details of the Sale
According to a filing dated January 11 with the U.S. Bankruptcy Court for the Southern District of New York, Celsius has struck a deal with Touzi Capital—an investment firm with interests in real estate and blockchain technology. They’re paying more than $1.3 million for a whopping 2,687 MicroBT M30S ASIC mining rigs. That’s one serious upgrade to a mining operation!
Why Touzi Capital?
After discussing with several brokers and market players, it appears that Touzi made the best offer for these miners. So, what does that mean for Celsius? Well, after the recent announcement that Core Scientific shut down over 37,000 miners owned by Celsius, it’s clear the lending firm needs to make some hard choices in these trying times.
Celsius Network’s Bankruptcy Journey
Let’s rewind a bit. Celsius filed for Chapter 11 bankruptcy in July 2022, locking up a staggering $4.7 billion in user deposits. Talk about a rough ride! A recent court ruling stated that the firm has until February 15 to file a restructuring plan. Will they draft the world’s fastest bankruptcy plan? Only time will tell!
The Bigger Picture: Bitcoin Mining Landscape
The United States strikes back as the leading player in the global Bitcoin hash rate game, boasting over 37% as of December 2021, according to the Cambridge Bitcoin Electricity Consumption Index. But don’t let that chart fool you; the crypto market crash in 2022 threw many inventive plans out the window, taking profit margins with it. The extreme weather events further complicated matters, leading mining operations to curtail their activities.
What’s Next for Celsius?
With all this equipment selling and restructuring, what does the future hold for Celsius? One thing is for sure: they better come up with a solid plan. Or else their bankruptcy saga might just drag on longer than any daytime soap opera!
Final Thoughts
Celsius’s journey is a lesson in the harsh realities of crypto lending and mining. The path forward is tricky, but one thing is for sure: the world of cryptocurrency never sleeps. Whether you’re rooting for them or shaking your head in disbelief, stay tuned because this story is far from over.
