Celsius to burn $137.2M as bankruptcy proceedings continue

Celsius expects its net cash flow to be negative by $137.21 million in three months, as per court reports.

As per the document, the paper revealed that the lender's entire Bitcoin obligations total 104,962 Bitcoins, valued at around $2.5 billion.
As per the document, the paper revealed that the lender's entire Bitcoin obligations total 104,962 Bitcoins, valued at around $2.5 billion.

Celsius, the embattled cryptocurrency lender, declared Chapter 11 bankruptcy in July and submitted additional paperwork in court on August 14 describing its budget for August through October, as reported by Cryptoslate.

Celsius expects its net cash flow to be negative by $137.21 million in the three months ending in October, according to court records. Operating expenses which result in $85.37 million for the period are the main contributor to the negative cash flow. The lender has set aside around $13.95 million of the $85.37 million for staff pay until October. Another $57.27 million is set aside for hosting costs associated with mining activities, Cryptoslate noted citing court reports.

Furthermore, the data revealed that Celsius expects to spend approximately $33.48 million on restructuring activities alone by the end of October.

According to the records, the lender’s liquidity by the end of August is estimated to be about $66.39 million as a result of the decreased cash flow. However, the amount is predicted to fall to a negative $33.92 million by the end of October, down from $11.05 million in September.

Celsius received 100,669 Bitcoin (BTC) deposits from its users as of July 29, according to the paper. However, towards the end of July, the lender only had 14,578 BTCs, which were worth roughly $348 million at the time.

As per the document, the paper revealed that the lender’s entire Bitcoin obligations total 104,962 Bitcoins, valued at around $2.5 billion. As of July 29, Celsius also had $557 million in Wrapped Bitcoin (wBTC). Celsius likewise has a USD Coin (USDC) holdings deficit. According to the document, the lender owes $944.84 million in USDC tokens despite owning only $278.75 million in USDC on July 29.

(With insights from Cryptoslate)

Also Read: What is the role of stablecoins in digital assets ecosystem

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