Join our feeds to automatically receive the latest headlines, news, and information formatted for your club's website or news reader.

Celsius Reveals It Owes Its Users $4.72 Billion

Written by
Celsius Reveals It Owes Its Users $4.72 Billion thumbnail
  • Celsius owes $4.7 billion to its users whilst its financial sheet is $1.19 billion in the red.
  • Just a few weeks ago, FTX backed out of a deal to acquire Celsius after finding a $2 billion hole in its balance sheet.
  • The company hopes its large mining division may use freshly mined BTC to boost its finances.

According to the Celsius company’s bankruptcy filing, the cryptocurrency lending company was left with a deficit of $1.2 billion following its infamous meltdown.

The report showed that the firm had assets worth $4.31 billion, but its liabilities totaled $5.5 billion. Of the $5.5 billion in liabilities, $4.7 billion is owing to the company’s 1.7 million customers.

After discovering a $2 billion shortfall in the lender’s balance sheet, FTX apparently changed its mind about completing a transaction with Celsius and walked away from the negotiations last month.

In a statement that was 61 pages long, the company’s top executive, Alex Mashinsky, stated that the business had taken judgments about asset deployment that, in retrospect, proved to be definite bad choices.

The amount of digital assets on [Celsius’s] platform grew faster than the company was prepared to deploy. As a result, the company made what, in hindsight, proved to be certain poor asset deployment decisions,

The corporation anticipates taking several actions to raise funds. One of which is the hope that its substantial mining subsidiary will be able to utilize newly mined Bitcoin (BTC) to expand its income statement and finance mining activities. As an additional option for raising funds, Celsius is thinking about selling assets and exploring investment options with other parties.

In related news, a presentation made by Celsius Network in advance of this afternoon’s bankruptcy court hearing presented a glimpse of the company’s current status as well as a general image of what a reorganization would look like.

Article Categories:
Bitcoin · Blockchain News · Celsius · FTX · Latest Post · News

Leave a Reply

Your email address will not be published. Required fields are marked *