Celsius Network Plans to Address Crypto Deficit by Mining Bitcoin

Celsius Network filed a Chapter 11 reorganization bankruptcy on Wednesday.
As per the document, the firm’s liabilities was around $5.5 billion.
The crypto lending firm plans to address the deficit by continuously mining Bitcoin.

A former banker turned full-time crypto analyst whose social media accounts are named ‘CryptoWorldJosh’ unveiled via tweet the balance sheet of crypto lending company Celsius.

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As per the YouTube account of CryptoWorldJosh, his main focus is about Bitcoin news, Ethereum news, and the prices of these top cryptocurrencies. His social media accounts share information about cryptocurrencies and also makes both fundamental and technical cryptocurrency analysis in his videos.

According to the document he shared, the company’s assets after removing CEL token is around $3.71 billion; The liabilities, including the money owed to users, has reached to $5.5 billion; And the deficit after removing CEL token is around $1.79 billion.

The filing also showed the plans that Celsius placed to address the cryptocurrency deficit, one of which is to keep on mining Bitcoin. As of date, the crypto lending firm currently owns 80,850 mining rigs and has 43,632 of those in operation. These mining rigs are currently generating around 14.2 Bitcoins per day.

Celsius also has an investment plan to operate around 120,000 rigs by the end of this year. Assuming that 110,000 rigs are operating and none of them are defective, the firm projects to generate around 15,000 Bitcoin in 2023.

According to the filing, the goal of Celsius is to “ take care of its global community,” and the company intends to exit from “chapter 11 that will result in maximum recoveries to its stakeholders.”

The plan of Celsius to make a recovery according to the filing is based on Bitcoin mining and a fund plan recovery, where the company sells its assets and/ or considers investing from third-party strategic or financial investors.

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Bryan Yanzon

Bryan is a gamer who became genuinely interested in crypto after his initial exposure to Play-to-Earn games like Axie Infinity and Pegaxy. He has basic knowledge of technical analysis and is keeping an eye out for interesting developments in the metaverse and GameFi space.