Celsius Network Defends Bitcoin Mining Plans Amid Bankruptcy
The renowned crypto lender Celsius Network defends its Bitcoin mining plans amid bankruptcy concerns. The New Jersey-based venture gained approval from Martin Glenn, a US Bankruptcy Judge, to spend 3.7 million dollars on building a new mining facility.
Additionally, the venture is spending 1.5 million dollars on customs and duties for imported mining rings. A lawyer from the Celsius legal team, Patrick Nash, talked with the judge about Bitcoin mining and its potential for the company.
With Celsius’ frozen assets leading to the bankruptcy filing, most of its operations like crypto lending have been halted. According to Nash, crypto mining can be extremely valuable in the current crypto market.
It has only been a week since Celsius Network filed for Chapter 11 protection. The company listed a 1.19 billion dollars deficit on its balance sheet. Its business model faced scrutiny after a shrewd dip in the crypto industry, following the fall of Luna and terraUSD.
The company lost its assets in an extremely volatile environment, so it froze customer accounts to stabilize the business and stem losses. Bitcoin mining seems to be the last ray of hope for Celsius to sew its relationship with clients and customers.
Some of their customers had already sent hate mail and threats even before Chapter 11 was filed. Amid all this, a group of investors has already constructed a possible case to gain control of Celsius’ BTC mining operations.
According to Dennis Dunne, the attorney for the investors, the clients may contend that the newly created coins belong to the British business that raised the funding for mining. It will restrict Celsius creditors from gaining control of the entire stack and its benefits.
Investors can also object to the company’s spending on BTC mining vendors while their recovery is in question. Given the extreme peril the company is in, nobody can speculate on its future standing right now.