Bankrupt Crypto Lender Celsius Takes Financing Requests Into Account

Bankrupt Crypto Lender Celsius Takes Financing Requests Into Account

Beleaguered crypto lending platform Celsius has received multiple offers of fresh cash to help fund its restructuring process, reported Bloomberg, citing the lawyer for the bankrupt crypto lender said Tuesday.

What Happened: According to the company's latest Chapter 11 documents, negative liquidity is anticipated to exceed $34 million by October of the year. The firm anticipates generating a negative net cash flow of $137.2 million over the next three months.

According to documents, Celsius has 80,850 mining rigs, of which 43,632 were in use, and mines about 14.2 BTC daily.

RelatedCelsius Expected To Reach Negative Liquidity By October

Joshua Sussberg of Kirkland & Ellis said on behalf of Celsius at a bankruptcy hearing on Tuesday that the company is considering financing packages of "different forms and sizes."

Why It Matters: To restructure or sell its company and prevent a liquidation, Celsius has to raise more money. The firm said the matters covered in the latest hearing included "our intention to see our customers capture any and all value associated with the recent rise of crypto."

In a tweet, Celsius stated that it will meet with the unsecured creditors' committee the next week and that it is "expeditiously" figuring out the next steps. It also noted that the next hearing is scheduled for September 1.

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