Bankrupt Celsius Network to Transition to Bitcoin Mining Company
Celsius Network, a major player in the crypto lending space, has recently unveiled plans to pivot its business model and shift to become a Bitcoin mining-only company. This decision comes following the approval of the company’s bankruptcy plan by the court.
## Celsius Transition To Mining NewCo
The shift to mining comes amid a turbulent financial period for Celsius Network which resulted in the company filing for bankruptcy. As part of its bankruptcy proceedings, Celsius filed for a reimbursement plan in an attempt to address its financial challenges. This plan garnered support from over 95% of Celsius’ creditors.
“In addition, the company seems to have forsaken its initial plan for the company’s future with Fahrenheit Group. The firm asserted that the transition was the primary business of the new company to be formed with Fahrenheit, LLC.”
This transition represents a departure from the company’s previous plans with the Fahrenheit Group, after the firm was acquired in a bidding war earlier this year.
## The SEC’s Imparted The Transition Move
The decision to transition to a Bitcoin mining company was influenced by the feedback received from the United States Securities and Exchange Commission (SEC) after the court confirmed Celsius Network’s plan. The company also highlighted that the new mining company will be owned by its customers.
“The firm’s plan to switch to a Bitcoin mining company was triggered by the United States Securities and Exchange Commission’s (SEC) feedback after the court confirmed its plan. The company also highlighted that the new mining company will be owned by its customers.”
Additionally, the feedback seems to have also imparted the initial plan of transferring the firm’s assets to the Fahrenheit Group. As noted in the filing, Celsius estates will retain certain of the assets in order to be monetized by the plan administrator.
This transition marks a significant shift for Celsius Network, signaling a new direction for the company amid ongoing financial challenges.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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