Celsius wants to mine Bitcoin to pay off his debts

Key facts:
  • In total, Celsius needs more than $5 million to activate its new mining farm.

  • The company’s next hearing with the judge will be on August 10 this year.

Celsius, a company dedicated to granting loans with bitcoin (BTC) and cryptocurrencies, hopes to be able to repay its debts through Bitcoin mining. The company that declared bankruptcy last Wednesday, July 13, requested authorization to dispose of USD 3.7 million for the construction of a mining farm.

The farm in question is already under construction. However, Celsius claimed that he needs that amount of money to complete the building and its preparation for bitcoin mining. “In a world where the cryptocurrency market is bouncing, the mining business has the potential to be very valuable.«, Were the words of the lawyer Patrick Nash, who represents Celsius in this case.

To the amount previously specified, another USD 1.5 million is added that the company needs to be able to pay the import costs and taxes of a batch of mining equipment that would soon reach Celsius.

Fortunately, for Celsius, Judge Martin Glenn approved that the company make use of these resources for the purposes described by its legal representative. It is important to clarify that After filing for bankruptcy, Celsius lost the right to freely manage its property and assets. For this reason, he was forced to request the authorization of the court to take this step.

The fate of Celsius’s proceeds from bitcoin mining

Celsius justified the petition he filed with the court by seeing the farm they are building as a tool to pay off the debt they owe their clients. The North American company hopes to be able to use the profits left by bitcoin mining to satisfy users of your platform.

It is worth making a parenthesis to point out that, as CriptoNoticias pointed out at the time, Celsius froze the accounts of its clients after a stampede of withdrawals that left them without liquidity. Now the company is looking for ways to respond to customers who were unable to withdraw their funds on time.

After obtaining approval of the use of resources by the court, the company could face another setback regarding its new farm. This is a group of shareholders who are considering proceeding against Celsius, since they believe that profits from bitcoin mining should not go to their creditorsbut from the British subsidiary that raised the funds for the development of the mining arm of Celsius.

Celsius’s next hearing with Judge Martin Glenn was set for August 10, 2022, via Zoom.

Celsius’s intentions to use mining as a means of repaying its debts contrast with its recent mining hardware sale. CriptoNoticias reported that, according to sources close to the company, Celsius auctioned off thousands of cryptocurrency mining devices at half price. What makes this fact more striking is that said sale was made a few weeks before declaring bankruptcy.

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