Celsius to Transition to Mining-Only NewCo After SEC Feedback in Updated Bankruptcy Plan


21 Nov 2023 7:55 AM

On Monday, a few hours before the Celsius announcement, CoinDesk reported that the SEC wanted more information about the assets of the former crypto lender....

  • Crypto lender Celsius will transition to a new company focused solely on mining bitcoin, abandoning its earlier plan to include staking.
  • The move comes after the U.S. Securities and Exchange Commission (SEC) provided feedback on certain aspects of Celsius's reorganization plan.
  • The court-approved reorganization plan faced delays as the SEC requested more information about the former lender's assets.
  • The implementation of Celsius's reorganization was assigned to Fahrenheit Holdings, which includes Arrington Capital and U.S. Bitcoin Corp.
  • The plan involved the creation of a new company registered in Delaware, referred to as NewCo, with a focus on mining and staking.
  • Celsius intends to file a motion to modify the plan to reflect the new Mining NewCo transaction, without requiring resolicitation of the plan.
  • Distributions to creditors are still expected to begin in January 2024.
  • Celsius now plans to register the shares in a new publicly traded Bitcoin mining company owned by Celsius customers.
  • Certain assets that were to be transferred to Fahrenheit Holdings will now be retained by Celsius's estates for regulatory reasons.

The sentiment of the article is neutral. It provides information about Celsius's transition to a new company focused on bitcoin mining and the impact of the SEC's feedback on the reorganization plan.

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You May Ask

What is Celsius's new focus after transitioning to a new company?Why did Celsius abandon its earlier plan to include staking?What caused delays in the implementation of Celsius's reorganization plan?Who will be involved in the implementation of Celsius's reorganization?When are distributions to creditors expected to begin?

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