Celsius Network’s Asset Bidding Frenzy
In the heart of the cryptocurrency storm, Celsius Network, a beleaguered crypto lender, has found itself at the center of attention with a staggering 30 potential bidders vying for its various assets. This includes its retail platform and mining business, which despite many doubts, remains hot property in the crypto world.
Non-Disclosure Agreements: The Game Changer
Since September, Celsius has reached out to over 125 interested parties and 30 of these have taken the plunge by signing non-disclosure agreements (NDAs). What’s that? No, it’s not a secret society or a new secret menu item at your favorite fast-food joint. An NDA is basically a fancy contract to keep the juicy details under wraps as negotiations stir up. This step ensures potential buyers play nice and don’t spill the beans on sensitive info.
The Bids Are In: What’s on the Table?
So, what have the bidders proposed? Celsius has received numerous bids with creative suggestions for transactions. These range from migrating customers from Celsius over to new platforms — along with a haircut on their assets (not the good kind you’d get at a salon) — to more traditional offers for single assets. Think of it as a yard sale, but the stakes are a wee bit higher than your grandma’s vintage chintz.
The Auction Timeline: From Delays to D-day
Mark your calendars, folks! The bidding deadline has passed as of December 12, and now the auction for Celsius’s assets is slated for January 10. This marks a shift from the originally planned date of December 15, which probably got tossed around like last fall’s leftovers. It turns out the holidays came a bit too early for these bidders.
Financial State of Affairs: A Tight Squeeze
As of late November, Celsius reported holding crypto worth about $2.6 billion. However, put that alongside their non-crypto assets, and they’re still scratching their heads, $1.2 billion short of covering all debts. It’s like going to the grocery store with only $50 when you owe $200. Not the best feeling!
Mining Success: A Silver Lining?
On a brighter note, Celsius’s mining operations have been cranking out positive cash flow month after month. They’ve been deploying more mining rigs and raking in the rewards, proving that while some areas of their business may be rocky, at least one part is chugging along nicely.
Good News for Customers
A bit of relief has come for some customers. Recently, bankruptcy judge Martin Glenn granted a motion allowing Celsius to reopen withdrawals for a small group—a nice Christmas gift for lucky customers. But don’t get too excited just yet; this only applies to specific assets and the amount must be under $7,575. It’s like finding a crumpled $5 bill in your winter coat: it’ll buy you lunch, but forget that shopping spree!
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