Celsius Network Plans To Build A Mining Facility As Part Of Its Restructuring Plan

Servidor de minería

✍️ 20 July, 2022 - 16:43 👤 Editor: Jakub Motyka

  • Given the insolvency crisis that Celsius is going through, they have begun a process of restructuring their capital.
  • Among their plans is the construction of a new Bitcoin mining facility.
  • The company has to deal with multiple lawsuits, in addition to debt with its creditors.

Celsius Network, one of the victims of the collateral damage caused by the fall of Terra, is planning to build a Bitcoin mining facility. This, as part of a financial restructuring plan with which they seek to recover from their insolvency crisis. Currently, the company already has a mining operation in the United States, with more than 43,000 mining platforms. They expect to reach 112,000 by the second quarter of 2023.

Let us remember that as a result of the fall of the Terra ecosystem and everything related to the bear market, the Celsius Network lending platform suspended all its operations. Last week they decided to declare bankruptcy, protected in chapter 11 of the bankruptcy law of the United States. By this means, the state allows them to reorganize their finances, in order to pay their creditors within the stipulated time.

How Will Celsius Network Restructure Its Finances Through Mining?

According to a recently exposed document, Celsius has already taken several actions in favor of its financial restructuring. One of them was the interruption of the service with its clients and the liquidation of some important loans. Their next step will depend on several key points, such as the creation of a new Bitcoin (BTC) mining facility, and the sale of assets and third-party investment opportunities. In addition to this, they will provide your customers the option to get their cash back at a discount, or stay long-term.

However, Celsius's actions have generated many problems within the market. As a result of this, there are a good number of class action lawsuits that threaten to hinder their recovery plan. At the moment, both analysts and investors are closely following the development of events, waiting for a possible outcome.

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  • taylor-vick-M5tzZtFCOfs-unsplash: Unsplash

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