As known from:
known from Coinwireknown from Benchknown from Coinindex
  • About CryptoGmblr.com
Contains commercial content
Cryptogambling / Crypto lender Celsius Network secures legal approval to shift into Bitcoin mining

Crypto lender Celsius Network secures legal approval to shift into Bitcoin mining

Publish Date: 29/12/2023
Stock Photo, tags: celsius network bitcoin - cdn-images-1.medium.com

Stock Photo – cdn-images-1.medium.com

U.S. Bankruptcy Court has approved crypto lender Celsius Network to transition into Bitcoin mining.

“Yesterday, the Court approved the implementation of our MiningCo transaction, allowing Celsius to move ahead with its Plan,” said Celsius in a social media post.

On December 27, as per court documents, Judge Martin Glenn allowed Celsius to pursue a second approved option by its creditors. This plan focuses on establishing a public company exclusively dedicated to Bitcoin mining, differing from the previous plan involving multiple business lines.

Judge Glenn said that the bankruptcy plan, approved in November, offered sufficient flexibility for Celsius to adopt an alternative plan when faced with obstacles from the U.S. Securities and Exchange Commission (SEC).

Celsius made the switch to operate as a Bitcoin mining company after the SEC declined approval for the relief associated with the initial option in the bankruptcy exit plan.

This initial plan involved creating NewCo, which would have expanded Celsius’ mining operations and other business activities. NewCo was supposed to be managed by the Fahrenheit consortium, consisting of crypto-related individuals and groups like Proof Group, Arrington Capital and Hut 8.

“As it has turned out, the SEC denied relief required to implement the NewCo Transaction. For that reason, the Debtors, with the Committee’s support, have switched to the second path approved by creditors: the Orderly Wind Down,” the document reads.

Switching to Bitcoin mining also led Celsius to separate from some external bidders chosen to oversee the new company. This decision placed Celsius solely responsible for operating the new mining business owned by the creditors.

Initially, Judge Glenn pointed out during a court hearing on November 30 that the mining plan differed from what the creditors had voted on. He eventually approved the deal without insisting on a new vote.

Certain creditors and the U.S. Department of Justice’s bankruptcy watchdog argued that Celsius should have held a new vote for the proposal, as reported by Reuters. Despite these concerns, Judge Glenn concluded that the new restructuring plan would not harm the creditors.

Celsius expects to emerge from bankruptcy early 2024

Celsius filed for Chapter 11 in July 2022, joining other crypto lenders that went bankrupt due to the industry’s swift expansion during the COVID-19 pandemic.

With this recent approval to shift into Bitcoin mining, Celsius expects to emerge from bankruptcy in early 2024.

“The MiningCo Transaction contemplates the formation of a new publicly-traded bitcoin mining company and will result in increased liquid cryptocurrency distributions to account holders upon Celsius’ emergence from bankruptcy, which is anticipated to occur in early 2024,” Celsius said.

Celsius’ interim CEO Chris Ferraro shared the company’s focus, saying, “This is a significant day for Celsius creditors and our focus on promptly distributing cryptocurrency continues to guide us.”

In the new plan, creditors will get a portion of their repayment in shares of the upcoming Bitcoin mining company.

“Celsius customers will own the stock of the Mining NewCo, managed by U.S. Data Mining Group, Inc. d/b/a US Bitcoin Corp (USBTC),” said Celsius.

This plan frees up $225 million in crypto assets, which were meant to support the rejected new businesses by the SEC. Per the agreed-upon plan, around $2 billion in Bitcoin and Ether will be returned to Celsius creditors.

Regarding the next steps of its new plan, Celsius shared on social media, saying, “Those who are eligible for any distributions under the Plan can expect to receive an email with further instructions in the coming weeks.”

Top Online Casinos
Top Casinos Bonuses
Stake.us
Stake.us
Stake.us Review
4.6/5
McLuck
McLuck
McLuck Review
4.6/5
High5Casino
High5Casino
High5Casino Review
4.5/5
Sweeptastic
Sweeptastic
Sweeptastic Review
4.5/5
Wow Vegas
Wow Vegas
Wow Vegas Review
4.5/5
Stake.us
Stake.us Bonus
$55 Stake Cash + 260K Gold Coins + 5% Rakeback
T&Cs apply
4.6/5
McLuck
McLuck Bonus
27.5 SC FREE and 57,5K Gold Coins
T&Cs apply
4.6/5
High5Casino
High5Casino Bonus
5 Sweeps Coins + 250 Game Coins + 600 Diamonds
T&Cs apply
4.5/5
Sweeptastic
Sweeptastic Bonus
44 SC FREE and 70K Lucky Coins
T&Cs apply
4.5/5
Wow Vegas
Wow Vegas Bonus
35 SC FREE and 1.75M WOW Coins
T&Cs apply
4.5/5
Latest News
Charles Hoskinson forecasts Altcoin season showdown: ADA vs. DOGE
Cardano (ADA) Faces Dual Meme Coin Competition where ...
Top 5 AI cryptocurrencies ready to thrive during the next bull market
New crypto ventures merge the groundbreaking capabilities of ...
Top Crypto Exchange Sites
Crypto Exchange Guide
  • Crypto Exchanges
  • Betting Exchange
Top Brands
Top Bonuses
Stake.us
Stake.us
Stake.us Review
4.6/5
McLuck
McLuck
McLuck Review
4.6/5
High5Casino
High5Casino
High5Casino Review
4.5/5
Sweeptastic
Sweeptastic
Sweeptastic Review
4.5/5
Wow Vegas
Wow Vegas
Wow Vegas Review
4.5/5
Stake.us
Stake.us Bonus
$55 Stake Cash + 260K Gold Coins + 5% Rakeback
T&Cs apply
4.6/5
McLuck
McLuck Bonus
27.5 SC FREE and 57,5K Gold Coins
T&Cs apply
4.6/5
High5Casino
High5Casino Bonus
5 Sweeps Coins + 250 Game Coins + 600 Diamonds
T&Cs apply
4.5/5
Sweeptastic
Sweeptastic Bonus
44 SC FREE and 70K Lucky Coins
T&Cs apply
4.5/5
Wow Vegas
Wow Vegas Bonus
35 SC FREE and 1.75M WOW Coins
T&Cs apply
4.5/5

Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.

Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.

21+NCPGGamblers AnonymousCloudflareSSLco² neutral
×
Your Bonus Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Visit Site