Court Grants Celsius Network Approval To Sell New Mined Bitcoins

U.S Court Appoints Independent Examiner in Celsius Case
  • Celsius mined 432.30 BTC in July, which is equivalent to nearly $10.3 million.
  • Judge Martin Glenn of the Bankruptcy Court reached the ruling.

Troubled crypto lender Celsius Network received a reprieve when the court supervising the firm’s bankruptcy case allowed the company to sell freshly mined Bitcoin.

Although there were early concerns, particularly those about the expenses of Celsius’ Bitcoin mining operations, Judge Martin Glenn of the Bankruptcy Court for the Southern District of New York reached the ruling on Tuesday.

Last month, Celsius Mining followed its parent business, Celsius Network, in filing for Chapter 11 bankruptcy protection. Before that, Celsius used the proceeds from the sale of Bitcoin it mined to support the company’s operations, and with the courts consent, that practice may now legally continue.

Providing Value to Customers

According to evidence presented during the hearing, Celsius mined 432.30 BTC in July, which is equivalent to nearly $10.3 million at the current pricing. Company projections for operating and capital expenditures were higher than the allotted budget.

Despite the fact that Celsius has disclosed in its filing that its Bitcoin mining operations will initially run at a loss, Judge Martin Glenn has stated that Celsius will be allowed to continue selling mined Bitcoin because he is inclined to believe the company’s business judgment that the move will ultimately provide value to its customers.

However, Celsius lawyer Ross Kwasteniet said that the first losses are attributable to the fact that the business just started mining last year and is still in the process of establishing the facility and acquiring mining gear.

According to Kwasteniet, Celsius’ Bitcoin mining activities are a “core asset,” and if the infrastructure is in place, the company’s financial condition could improve over the next few months.

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