👉👉👉 #US Bankruptcy Court Approves $225M ‘MiningCo Transaction’ for Celsius, Prevents Securities Ruling in Chapter 11 Proceedings
#cryptocurrency lending firm Celsius Network has achieved a crucial milestone in its Chapter 11 bankruptcy proceedings, as the United States Bankruptcy Court for the Southern District of New York approved the proposed "MiningCo Transaction." The court's decision allows Celsius to proceed with establishing a public company exclusively dedicated to bitcoin mining. The MiningCo Transaction involves capitalizing the new entity (NewCo) with $225 million in fiat and transferring specified mining assets. Celsius plans to relaunch as NewCo, focusing on staking and mining, with a projected balance sheet of $1.25 billion and plans to generate $10 to $20 million per year through staking on the #Ethereum network. The court's ruling also nullifies prior agreements related to unsecured claims, setting new guidelines for the company's wind-down and creditor settlements. Notably, the court's decision does not impact the Securities and Exchange Commission's rights concerning crypto tokens. Celsius, once valued at $3 billion, faced financial difficulties in 2022, leading to one of the largest crypto collapses of the year. The approved MiningCo Transaction is seen as a significant step in reshaping the company's future.
Source - Hassan Shittu @hassan-shittu
Website - Cryptonews