Celsius has emerged from Chapter 11 Bankruptcy in the United States and is set to start distributing $3 billion worth of crypto and fiat to creditors along with the launch of a new Bitcoin (BTC) mining firm.
In a Jan. 31 press release, the crypto lender said its bankruptcy exit sees the creation of Ionic Digital, Inc., a Bitcoin mining company managed by crypto mining firm Hut 8 and headed by Hut 8 Chief Commercial Officer Matt Prusak.
Celsius said Ionic Digitial will “continue to deliver recoveries to creditors” and its stock is “expected to be publicly traded once the requisite approvals are received.”
Celsius added it increased the amount of crypto available for distribution to creditors by around $250 million through “converting altcoins to BTC or ETH and through previous settlements.”
“Everyone assumed Celsius would disappear completely like the other crypto lenders that were filing bankruptcy around the same time,” said David Barse and Alan Carr — members of a board that steered Celsius through bankruptcy. “Our exit from bankruptcy is the culmination of an extraordinary team effort.”
Celsius said it will now start winding down its operations and discontine its mobile and web applications.
Its exit from bankruptcy comes over 18 months after Celsius paused withdrawals in June 2022 to “put Celsius in a better position to honor, over time, its withdrawal obligations” after the price of its native token, Celsius (CEL), plummeted earlier that year.
This is a developing story, and further information will be added as it becomes available.