tl;dr

In a restructuring move, Celsius has announced plans to unstake its holdings of ETH, potentially leading to an increase in its prices. The company, which is transitioning to become a bitcoin miner, had previously included staking in its activities and used staking rewards to cover costs associated w...

In a restructuring move, Celsius has announced plans to unstake its holdings of ETH, potentially leading to an increase in its prices. The company, which is transitioning to become a bitcoin miner, had previously included staking in its activities and used staking rewards to cover costs associated with the reorganization plan. With over $151 million worth of ETH staked, earning 4%-5% in annualized yields, Celsius' unstaking activity could unlock ETH and positively impact prices. Additionally, outflow data shows Celsius sent over 30,000 ETH to custodian Fireblocks, some of which was deposited at crypto exchange Coinbase, indicating movement toward stablecoins. Ether (ETH) prices might gain in the coming weeks after crypto lender Celsius, which is restructuring in bankruptcy proceedings, said it will unstake its holdings of the second-largest cryptocurrency, removing a factor that may have contributed to the token’s underperformance in recent months.


The company, which is converting to become a bitcoin miner, had previously said it would include staking in its activities. The firm has been selling staking rewards on the open market to cover costs associated with the reorganization plan. "Celsius will unstake existing ETH holdings, which have provided valuable staking rewards income to the estate, to offset certain costs incurred throughout the restructuring process," the firm said in an X post. "The significant unstaking activity in the next few days will unlock ETH to ensure timely distributions to creditors."


Data from analysis tool Arkham show crypto wallets linked to Celsius have staked over $151 million worth of ether, a position on which it likely earns over 4%-5% in annualized yields. While the staking rewards may not cause a large amount of ether sales, they may have contributed to negative sentiment for the token, alongside other factors such as the interest in other blockchains. Meanwhile, outflow data shows Celsius sent over 30,000 ETH to custodian Fireblocks in the past week, some of which was deposited at crypto exchange Coinbase, where it may have been likely exchanged for stablecoins. Millions worth of ether has been sent to custodians and exchanges in the past week. (Arkham)

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Disclaimer

The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.
 1 Nov 24
 1 Nov 24
 1 Nov 24