Filing for Bankruptcy, Celsius Alters Plans: Transitioning to Bitcoin Mining!

• Crypto lending provider Celsius, as announced in a court filing on Monday, is transitioning to a new company focused solely on Bitcoin mining.
• This move comes after the U.S. Securities and Exchange Commission (SEC) provided feedback on “certain aspects of the plan.”
• A Judge had previously transferred the administration of Celsius’s arrangement to Fahrenheit Holdings, a group including Arrington Capital and crypto miner U.S. Bitcoin Corp.

Bankrupt crypto lending provider Celsius is changing its plans and gearing up to start Bitcoin mining.

Celsius to Focus on Bitcoin Mining

Crypto lending provider Celsius, as announced in a court filing on Monday, is transitioning to a new company focused solely on Bitcoin mining. This is a change from a previous restructuring plan that also included a focus on staking.

This move comes after the U.S. Securities and Exchange Commission (SEC) provided feedback on “certain aspects of the plan.” The news about Celsius facing an obstacle due to the SEC seeking more information about the assets of the former crypto lending provider, as the court-approved restructuring plan encountered a hurdle, was reported a few hours before by COINOTAG.

A Judge had previously transferred the administration of Celsius’s arrangement to Fahrenheit Holdings, a group including Arrington Capital and crypto miner U.S. Bitcoin Corp. Fahrenheit had won a bid to acquire Celsius in May 2023. The plan involved creating a new company registered in Delaware, often referred to as NewCo in documents and used to describe a corporate spin-off before the final name is given. According to the court-approved plan, the company was set to focus on mining and staking.

Distribution to creditors may begin in January 2024

The filing stated: “In the coming weeks, Debtors intend to file an application with the Court to approve changes reflecting the New MiningCo transaction in the Plan. Debtors believe these changes will not require a re-vote of the Plan. Debtors continue to expect that distributions to creditors may begin as early as January 2024.”

The SEC’s feedback mentioned that “Celsius now intends to begin the process of applying to register the shares of a new publicly traded Bitcoin mining company now owned by Celsius customers.” Bitcoin mining was the proposed new company’s core business, but the “feedback” from the SEC led to the conclusion that the “specific” assets planned to be transferred to Fahrenheit Holdings will now be “retained by Celsius for regulatory reasons and administered and monetized for the benefit of creditors by the Plan Administrator and/or Defendant Manager.