Bankrupt Crypto Lender Celsius Considers Funding Requests

Crypto lending platform under siege Celsius received several offers of fresh cash to help fund its restructuring process, Bloomberg reported, citing the bankrupt crypto lender’s attorney as saying on Tuesday.

What happened: According to the company’s latest Chapter 11 filings, negative cash is expected to exceed $34 million by October of the year. The company expects to generate negative net cash flow of $137.2 million over the next three months.

According to documents, Celsius owns 80,850 mining rigs, of which 43,632 were in use, and mines about 14.2 BTC per day.

Related: Celsius is expected to reach negative liquidity by October

Joshua Sussberg of Kirkland & Ellis said on behalf of Celsius at a bankruptcy hearing on Tuesday that the company was considering financings of “different shapes and sizes.”

Why is this important: To restructure or sell its business and avoid liquidation, Celsius needs to raise more money. The company said issues covered in the latest hearing included “our intention to see our customers capture any value associated with the recent rise of crypto.”

In a tweet, Celsius said he would meet with the committee of unsecured creditors next week and was “quickly” defining next steps. He also noted that the next hearing is scheduled for September 1.

Michael J. Birnbaum