Celsuis Makes Significant Shift to Focus on Bitcoin Mining

Celsius Shifts Focus to Bitcoin Mining Exclusive Entity

In a recent court filing, Celsius, a cryptocurrency lending platform, has announced its intention to shift its reorganization strategy towards a new company dedicated solely to Bitcoin mining. This change represents a departure from its initial focus on mining and staking.

Feedback from the U.S. Securities and Exchange Commission (SEC) led Celsius to alter its reorganization strategy. The company originally planned to create a new entity focusing on mining and staking. However, it now intends to transition into a new company solely dedicated to Bitcoin mining, as disclosed in the recent court filing.

Celsius is in the process of registering shares for a new publicly traded Bitcoin mining company called ‘Mining NewCo,’ which will be owned by its own customers. This is a significant departure from the previous plan, which had assigned the implementation responsibility to Fahrenheit Holdings, a consortium including Arrington Capital and U.S. Bitcoin Corp.

The shift in strategy has not affected the timeline for distributions to creditors, with Celsius expecting them to commence in January 2024. However, the alterations to the plan will involve Celsius applying to register shares for the new Mining NewCo. Certain assets initially intended to be transferred to Fahrenheit Holdings will now be retained by Celsius’ estates based on regulatory considerations.

Celsius’ Plan to Recover Customer Funds

In July 2022, Celsius sought Chapter 11 protection after implementing a freeze on customer accounts to prevent withdrawals. Once valued at $3 billion, Celsius experienced a significant collapse in the crypto space last year. Michael Arrington, the founder of Arrington Capital, highlighted Celsius’ unique path to revival, distinguishing it from other struggling crypto companies in 2022.

On November 9, Fahrenheit, a group led by Arrington Capital, announced its intention to acquire a minority stake in the restructured Celsius for $50 million. The plan involved publicly listing the new company’s stock on Nasdaq. This innovative approach sets Celsius’ revival apart from other crypto companies that faced challenges during the tumultuous events of 2022.

In summary, Celsius’ reorganization strategy has shifted towards creating a new company exclusively focused on Bitcoin mining, a departure from its initial focus on staking. The company’s unique approach to revival and recovery of customer funds highlights its determination to navigate challenges in the crypto space.

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J-S Tremblay
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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