Celsius Outlines $17.88B in Losses as it Prepares for Bankruptcy Hearing

A Celsius Network presentation ahead of Monday afternoon’s bankruptcy court hearing shows the company has lost $17.88 billion in total assets since March 30, with $12.3 billion of those losses coming via the overall market collapse. 

The remaining $5.5 billion in losses came via user withdrawals ($1.9 billion), third party crypto liquidations ($0.9 billion), loans ($1.9 billion) and crypto lost form investments ($0.1 billion). Here is an asset snapshot provided by the crypto lending firm. 

This presentation comes less than a week after Celsius reported a $1.2 billion hole in their balance sheet, as they had $4.3 billion in assets and $5.5 billion in liabilities. This ultimately led to the lending firm filing for Chapter 11 bankruptcy. 

As part of their recovery plan, Celsius is hoping its mining subsidiary can use minted Bitcoin (BTC) to grow its balance sheet and fund mining operations. They are also exploring selling assets and third-party investments to raise enough capital. 

The New Jersey-headquartered firm provided a brief timeline of events that led to the chapter 11 bankruptcy filing, starting with their $600 million Series B funding round. Next in the timeline, was the crypto market headwinds, which was catapulted by the Tera Network collapse. Then, they showed that Celsius paused withdrawals, Swap and transfers between accounts citing “extreme market conditions.” Lastly, they hired restructuring advisors to help them solve their liquidity issues. 

While Celsius explained what they felt happened in their own words, it’s possible that Celsius users wish a little more was explained in the brief timeline. 

The company also noted that it will provide customers one of two options to recover some of their losses: receive a discounted cash settlement or to remain “long crypto,” which could involve receiving CEL tokens. 

CEL is currently trading at $0.7844, down 1.85% in the last 24 hours. 

Author: Tyler Irvin

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