Celsius looks to raise cold hard cash for creditors

Bankrupt crypto lender wants to raise money by selling discount vouchers for Bitmain.

Bankrupt cryptocurrency lender Celsius is looking to return funds to its creditors by selling discount vouchers for mining company Bitmain in an attempt to raise more than $14m.

The firm filed for bankruptcy in July 2022 as the crypto winter set in.

Celsius are in discussions with six potential buyers for the coupons, sourced via mining broker Bitooda, Bitmain and Celsius’ own contacts.

The deal includes coupons that offer buyers of mining rigs a 10%-30% discount on future purchases from Bitmain, the maker of the Antminer range, as well as the credits that accrue when purchasers pay by instalment.

The vouchers have a combined face value of $48m, and the company believes they can sell the coupons for $7.4m and the credits for $7m on secondary markets.

A legal filing, made on the behalf of Celsius said: “Current market conditions and the time to expiration, offer the debtors the greatest likelihood of obtaining maximum value for the Bitmain Coupons and the Bitmain Credits.”

“The market value of the Bitmain Coupons decline as their expiration dates near until they are worth nothing.”

The proposal follows a similar deal by bankrupt bitcoin miner Core Scientific, which received approval from a judge in the Southern District of Texas to sell Bitmain coupons in an attempt to raise $1m for its creditors.

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Written by David Kent

David has more than a decade of sports betting and sports writing experience working with some of the biggest names in the industry. He focuses on articles covering these subjects including how crypto is transforming sportsbooks.

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