- Celsius Network acknowledged that it ran out of money.
- Josh Sussberg, an attorney for Celsius, reported the receipt of cash injection offers on Tuesday.
- Celsius has to invest more money to get its mining operations up and running.
A U.S. judge has given the go-ahead for the bankrupt cryptocurrency lender Celsius Network to sell the bitcoin (BTC) that it mines. Celsius Network revealed that it was running low on cash. Since then, the firm has received multiple bids to raise money.
During a bankruptcy hearing on Tuesday, Celsius attorney Josh Sussberg reported the receipt of cash-injection bids, although he did not specify the size of the amounts. According to Sussberg, moving quickly on this is “mission crucial” for Celsius. Companies restructuring in U.S. bankruptcy court typically look for funding to maintain their operations.
Since Celsius needs to make additional investments to get its mining facilities operating at full capacity, Chief U.S. Bankruptcy Judge Martin Glenn in Manhattan expressed concern at a hearing that bitcoin mining would not be immediately profitable. However, he said he would respect the company’s business judgment and permit it to proceed.
However, unless Celsius gives more details on the assets it seeks to sell, he has forbidden it from selling stock or debt stakes in other cryptocurrency businesses. Since Celsius filed for Chapter 11 bankruptcy on July 13 in response to its decision to suspend client accounts, its expenditure has come under examination in bankruptcy court. Following a dramatic selloff in the cryptocurrency market caused by the demise of significant tokens terraUSD and luna in May, its business model, like that of other crypto lenders, came under criticism.
The assumption that Celsius’s mining activities will pay off a sizable chunk of its obligations, including the $750 million inter-company loan the mining subsidiary borrowed from Celsius, has previously been promoted by the firm.
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