Key Takeaways
- The process could involve moving Celsius clients to the acquirer’s platform and reducing their assets.
- Celsius advisers plan to work with potential buyers in the upcoming weeks to improve existing bids and announce whether a sale will occur in mid-January.
Defunct crypto lender Celsius have lured multiple bidders for its retail platform and mining businesses, as per a company presentation filed on December 20 in court. Reportedly, the potential buyer pool includes 30 parties. The crypto lender claims it also received several single-asset bids. The bidding could potentially involve moving Celsius clients to the acquirer’s platform and reducing their assets.
Company lawyer Chris Koenig in the hearing stated that Celsius advisers plan to work with potential buyers in the upcoming weeks to improve existing bids and announce in mid-January whether a sale will occur. The bankrupt crypto lender filed for a bidding proposal on October 3, seeking the court’s approval to sell its remaining assets.
Celsius earlier set the auction date for October 20, but opposition from the U.S. Trustee moved the motion to a later date. The auction for Celsius’ various assets is now set for January 10. The latest development comes amid U.S. bankruptcy judge Martin Glenn granting a motion filed by the lender in September to allow customers with digital assets held in certain accounts to be withdrawn.
On December 7, the judge also ordered Celsius to return some coins that had been moved from interest-bearing accounts to custody accounts. Celsius filed for Chapter 11 bankruptcy in July, citing “extreme” market conditions and listing a $1.19 billion deficit on its balance sheet.
Celsius estimated its assets and liabilities in the U.S. Bankruptcy court filing as between $1 billion to $10 billion, with over 100,000 creditors. As of November 25, the crypto lender held crypto worth $2.6 billion. Despite this, the bankrupt lender is still $1.2 billion short of being able to pay off all its debts. Celsius has, however, claimed that its ongoing mining activities have been profitable, and it has generated positive operating cash flow every month in 2022 as it deploys new mining rigs.
Celsius, which hit its peak during the Covid-19 lockdown, came under scrutiny after a sharp crypto market sell-off in early 2022, partially triggered by the collapse of major tokens terraUSD and luna.
