- Celsius filed for bankruptcy and converted all its altcoin to BTC and ETH.
- If the price of BTC and ETH would increase 2x from its current position, Celsius will rejoice.
- If this were to happen, Celsius can repay all of its USD claims.
As the crypto community is aware, Celsius, the prominent crypto lender, recently filed for bankruptcy. Following the bankruptcy, Celsius got the right to transfer all its altcoins into Bitcoin (BTC) and Ether (ETH).
Celsius still has a lot of USD claims it needs to repay. According to the crypto charts, if the current prices of BTC and ETH goes through a 2X price increase, Celsius will be able to replay all its USD claims
In detail, Celsius is facing a Chapter 11 bankruptcy with multiple claims worth billions of dollars. However, according to a new estimate by the Bank of the Future (BF), Celsius could potentially repay all USD claims if the prices of Bitcoin (BTC) and Ether (ETH) doubled from their current levels.
Simon Dixon, founder of the Bank of the Future, tweeted the estimated prices at which BTC and ETH would need to reach for Celsius to repay all claims and retain other assets. This would mean the price of BTC should go to $54,879. Similarly, ETH should reach 3,750.
To expand on why, these numbers are set from the final deal with Fahrenheit Group. This is the group that acquired Celsius’s assets in May. Accordingly, Celsius has already appealed in court to convert its altcoins into BTC and ETH to maximize asset value.
It is important to note that these estimates are based on information from the BF internal investment banking team and do not involve privileged information. The restructuring plan under Fahrenheit includes mining, institutional loans, and investments valued at approximately $1.4 billion, along with $450 million in liquid crypto.
Simon Dixon emphasizes that creditors should aim to exit the bankruptcy proceedings before the end of 2023 or before BTC and ETH reach the estimated prices. He also warned about the possibility of another rug pull and urged creditors to fight against it if necessary.
The situation involving Celsius’ bankruptcy proceedings continues to evolve. Meanwhile, stakeholders are closely monitoring the prices of BTC and ETH as they play a crucial role in determining the potential repayment of USD claims.
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