Troubled Celsius pays off $142.8 Million Bitcoin Loan since July 1
- Since July 1, the platform has repaid $142.8 million worth of Dai (DAI) stablecoins across four separate transactions
- On July 4, the lending platform paid over $114 million to clear its bitcoin loan.
Crypto Lending Platform Celsius has been exploring options to stay afloat ever since it froze withdrawals in Mid-June. As part of its last-ditch efforts to save itself from insolvency, Celsius has been actively paying off loans.
Reports suggest Celsius has repaid a substantial amount of its outstanding debt to Maker (MKR) protocol since July beginning. Since July 1, the platform has repaid $142.8 million worth of Dai (DAI) stablecoins across four separate transactions. On July 2, the lender paid off $67 million of its loans, according to crypto researcher Plan C. The debt was combined between AAVE, Compound, and Maker. On July 4, the lending platform paid over $114 million to clear its bitcoin loan.
Celsius paid off a $50 Million worth Bitcoin Loan on July 4, which was soon followed by payment of $64 million in DAI. The loan repayments has helped Celsius’ liquidation price on its Wrapped Bitcoin (wBTC) loan to drop to $4,966.99 Bitcoin (BTC). $4,967 is a significant reduction from the previous price of around $14k, signaling that the lender has a higher chance of saving itself from insolvency.
Despite being on the brink of insolvency, Celsius’s Token-CEL has fared well in recent days. CEL had a 38.5% growth in the last 14 days and recorded a 16% growth in the previous seven days. The latest debt repayment development comes amid Celsius laying off 150 staff members who constitute 25% of its workforce to cut costs.
To tackle the liquidity crisis, the company has recently brought in financial advisers to prepare for possible bankruptcy. Reportedly, Wall Street bank Goldman Sachs is looking to raise $2 billion from investors to buy distressed assets from the troubled Celsius.
Celsius is, however, not the only lending platform to be hit by the current market volatility. Spiked inflation rates and liquidity crisis have also forced Voyager, Vauld to freeze withdrawals. Crypto hedge fund Three Arrows Capital (3AC)-one of the most prominent names in the crypto ecosystem, had to file for bankruptcy as it failed to make the required payments on a loan.
Celsius is currently trying its best to decrease its collateral to save itself from a complete collapse. However, it is yet to be seen if Celsius will resurrect or will be just another 3AC beaten by the crypto market’s volatility.