2023-11-21 05:10:55 ET
Cryptocurrency company Celsius Network has
revealed
plans to transition its services into Bitcoin mining-only operations. That comes amid its insolvent proceedings. The digital assets firm has witnessed financial troubles over the last year, which saw it file for bankruptcy.
Meanwhile, the US Securities & Exchange Commission’s feedback after the court confirmed Celsius’ insolvent plan triggered the company’s switch to mining-centered undertakings. Celsius Network will proceed to “register shares in a new publicly traded Bitcoin mining company that will be owned by Celsius customers.”
In that context, the company has abandoned the initial plan of creating a firm with Fahrenheit LLC, citing regulatory obstacles. Fahrenheit
won
the $2 billion bid to purchase the Celsius Company.
Meantime, Celsius is in contact with certain parties as it plans the management of the Bitcoin mining firm Mining NewCo.
Further, the crypto firm will seek court approval to pivot its offerings into mining-only. The firm remains confident that the modifications will not need plan re-solicitation (despite the strategic transition) and expects to start creditor distribution early next year.
“The debtors still anticipate that distributions to creditors will commence in January of 2024.”
Celsius Network expects the transition to magnify liquid crypto distribution for creditor payouts and reduce management fees.
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Celsius Network to focus on Bitcoin mining following SEC’s latest feedback
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