Celsius Received Approval to Continue Bitcoin Mining
Godfrey Benjamin Aug 18, 2022 02:00
Celsius Network has been granted the approval to use its mined Bitcoin to offset some of the deficit incurred in its daily operations.
Celsius Network has been granted the approval to use its mined Bitcoin (BTC) to offset some of the deficit incurred in its daily operations.
The approval was granted by the Judge presiding over the firm’s bankruptcy case, Judge Martin Glenn of the Bankruptcy Court for the Southern District of New York.
The Celsius Mining subsidiary was also declared as bankrupt as the parent company while it has been continuing its mining operations, the proceeds have not been sold since the bankruptcy filing was made. The embattled digital currency lender published a filing that showed that a total of 432.30 BTC (worth about $10.3 million at current prices) was mined in the month of July.
There were many discrepancies and objections concerning the request filed by the company to offset its operating expenses with its mined BTC. While the company’s mining venture is poised to run at a loss in the short term, Judge Glenn said he believes it is a viable path that can benefit the firm’s creditors in the long term.
Ross Kwasteniet, the General Counsel of Celsius Network, said the company considers its mined Bitcoin as one of its core assets. He noted that despite the fact that the mining operation is not at its utmost best at this time, the short-term losses are bound to be part away with when the company eventually installs the needed facilities and miners to bolster its operations.
Bankruptcy proceedings can be very costly, and Celsius’s financial documents had earlier indicated that the beleaguered firm could run out of money by October. With the new permission from Judge Glenn, Celsius Mining can now be tagged as the needed lifeline that the company needed to weather the current storm surrounding the bankruptcy and its business continuity in general.
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