Celsius Network evaluates crypto mining bids

Celsius Network has reportedly received multiple offers for its cryptocurrency mining platform and operations.

The bankrupt cryptocurrency lender told a bankruptcy court on Tuesday (December 20) that it has received offers for its retail platform, its mining business and a combination of both, Bloomberg he reported Tuesday (December 20).

The terms of the bids were not disclosed, and the company’s advisers have not decided whether to sell parts of the company, sell the company as a whole or target a different restructuring plan, according to the report.

Advisers will work with a potential buyer of 30 buyers to refine offers and announce next steps in mid-January, the report said.

Company presentation presented in court showed that Celsius Network held $2.6 billion worth of cryptocurrencies as of November 25, that there was a $1.2 billion gap between the value of all its assets and its liabilities, that its crypto mining operations generated positive operating cash flow flow and that the company continues to develop those operations, the report said.

Celsius Network has filed for Chapter 11 bankruptcy July 13, a month after it froze customers’ accounts.

The company ran into trouble by offering large returns to crypto depositors while making large loans that were backed by insufficient collateral. This made Celsius Network vulnerable to a market downturn.

The company froze withdrawals, exchanges and transfers in June — a “difficult but necessary” step to prevent flight and losses for clients, a board member said at the time — and then filed for bankruptcy in July.

On December 7, a judge ordered Celsius Network to return the cryptocurrency custodial accounts customers — a group of coins worth $44 million in September — and return some coins that were moved from interest-bearing accounts to custodial accounts shortly before the company filed for bankruptcy.

The latter order applied to coins included in the transfers that were below $7,500 — a group that was worth about $11 million in September — while the rest remain in the Celsius Network.

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