EddieJayonCrypto
29 Dec 23
Celsius Network has been granted approval by the U.S. bankruptcy court to pivot to Bitcoin mining, allowing the company to deviate from the previously approved bankruptcy plan. By transitioning to Bitcoin mining, Celsius will no longer be associated with certain selected bidders and will be led by U...
Celsius Network has been granted approval by the U.S. bankruptcy court to pivot to Bitcoin mining, allowing the company to deviate from the previously approved bankruptcy plan. By transitioning to Bitcoin mining, Celsius will no longer be associated with certain selected bidders and will be led by U.S. Bitcoin Corp. This change in business focus frees up $225 million in cryptocurrency assets, benefiting customers, who will also receive equity shares in the new Bitcoin mining business.
The U.S. bankruptcy court has granted approval for cryptocurrency lender Celsius’s Network to pivot to Bitcoin mining, according to a Reuters report. A U.S. bankruptcy judge has approved the request, ruling that the company could deviate from the previously approved bankruptcy plan. According to the U.S. Bankruptcy Judge Martin Glenn in Manhattan, the bankruptcy plan, which was approved in November, contained enough flexibility to allow Celsius to switch to a backup plan. The switch was deemed reasonable after Celsius reached a “road block” with the U.S. Securities and Exchange Commission. Celsius will no longer be associated with certain selected bidders for the new company and the responsibility of operating the newly formed creditor-owned mining business will fall under the purview of U.S. Bitcoin Corp. This bankruptcy plan frees up $225 million in cryptocurrency assets, according to Reuters, that would have been used to fund the new business line, which was rejected by the SEC. As a result, customers will have the opportunity to benefit from this sum, according to the judge. Moreover, customers would also receive equity shares in the new Bitcoin mining business.
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