- 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).
Read CRYPTONEWSLAND on
google news
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.
Read Also
disclaimer read moreCrypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
