By Michael Scott
Bankrupt Celsius Networks admitted receiving multiple bids for its assets scheduled for action in January 2023. Days after the court gave the green light to resume withdrawals for frozen customers’ assets, the bankrupt crypto lender attracted 30 bidders seeking mining and retail businesses.
Celsius Receives Multiple Suitors for its Assets
The presentation filed before the bankruptcy court on December 20 revealed over 125 parties had expressed contact since September. In addition, it noted that 30 potential acquirers executed the non-disclosure deed to safeguard their sensitive information and bidding terms as they negotiated.
Celsius filings confirmed receiving multiple bids annexing proposed business structures and the nature of compensation. The filings acknowledge proposed haircuts to the existing assets and migration of Celsius users to the bidder’s platform. Other bidders have expressed interest in single assets rather than the collective infrastructure.
Auction Scheduled for 2023
The Celsius Network auction is scheduled for January 10, as the bidding window lapsed on December 12. The crypto lender emphasized that it will not postpone the auction again, earlier set for December 15.
The notes presented by Celsius on November 25 indicated the lender crypto holding was roughly $2.6 billion. It added that including the non-crypto assets left the lender with a $1.2 billion deficit to settle its debts.
Celsius further lauded successful mining operations that have yielded positive operating cash flow. It added that the positive cash flow realized monthly has led Celsius to deploy additional mining rigs.
Celsius Set to Reopen Withdrawals
An update issued on December 20 by Celsius Network confirmed receipt of greenlight from Judge Martin Glenn on its September motion to resume customer withdrawals.
The court granted Celsius request to reopen withdrawals for assets locked in its Custody Program. The court directed the withdrawals should not exceed $7575. Also legible for withdrawal are funds channeled from Celsius Borrow and Earn Programs within three months of the July 13 bankruptcy filing.
Judge Glenn extended the order to include assets considered ineligible Withhold Assets. He further directed Celsius to convene a meeting with the committee representing unsecured creditors and the Withhold Ad Hoc Group.
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