The bankruptcy court approved Celsius Network’s plans to sell mined Bitcoin to finance operating expenses, as reported by The Block.
The funds will be used to pay for services from critical suppliers, taxes and fees, utilities, insurance premiums, and lawyers’ fees.
During the previous hearing, the creditors’ committee secured a block on the sale of mined Bitcoin.
The revised motion from Celsius eased concerns that the proceeds would be used for trading or lending to generate profit. The judge acknowledged that the firm might not achieve positive cash flow from mining, and that would have negative consequences.
According to documents, Celsius Mining currently generates an average of 14.2 BTC per day.
In early July, the court allowed the company to spend more than $5 million to complete construction of the Texas mining facility. Platform representatives say it could take around two months.
The creditors’ representatives pointed to a lack of transparency regarding the specifics of the mining business’s costs and said they were prepared to move for the appointment of an expert panel to clarify this and other questions.
Earlier, creditors said they intended to seek the court’s application of Правила 2004 as part of a broad investigation. It involves testimony from interested parties and document production in a process similar to civil litigation.
The next hearing is scheduled for September 1. The creditors’ committee will finalise its position on August 19.
In July Celsius подала for bankruptcy in a New York court under Chapter 11 of the U.S. Bankruptcy Code. The company said its liabilities exceed assets on the balance sheet by почти на $1,2 млрд.
On July 19, the company presented a restructuring plan to creditors. It envisions directing the profit of the subsidiary mining company to reimburse losses to users and pay creditors. Prior to this, Celsius Mining подала to the SEC for an IPO.
According to the latest assessment, the ‘hole’ in Celsius Network’s balance sheet составила $2,85 млрд. From August to October the platform will lose $137 million due to investments in the mining business and restructuring costs, completely exhausting its cash reserves.
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