In a strategic move amid ongoing restructuring efforts, troubled crypto lender Celsius has executed a significant transfer of approximately $10 million worth of Ethereum to digital asset platform FalconX. This transaction is a pivotal step in the company’s evolution into a creditor-owned entity, with a focused emphasis on crypto mining and staking, following the approval of a comprehensive bankruptcy plan by the judiciary.
The transfer involved 5,160 ETH, valued at $10.49 million, as reported by Etherscan on November 15, 2023. Analysts speculate that this move is a calculated asset sale, driven by the recent surge in Ethereum’s value, witnessing an impressive 80% increase year-to-date, reaching $2,033. Earlier this year, Celsius had executed a transfer of 428,000 STETH, valued at $780 million at that time, from Lido Finance to FalconX.
In the days preceding this latest transaction, Celsius has actively engaged in liquidating diverse assets, including stablecoins, SPELL tokens from Abracadabra DeFi, and BAT (LON:BATS) tokens from the Brave browser. These assets were strategically moved to prominent exchanges like Binance and OKX. This meticulous liquidation process is an integral part of Celsius’s overarching strategy to navigate bankruptcy proceedings successfully and restructure its operational framework.
The company’s trajectory is now charted towards becoming NewCo, a crypto mining and staking firm operating under creditor ownership. The projected balance sheet for NewCo stands at an estimated $1.25 billion, encompassing a significant portion in liquid cryptocurrencies poised for potential staking on the Ethereum network.
Celsius’s strategic pivot follows a tumultuous period starting in June 2022, marked by market instability that prompted the company to freeze withdrawals and subsequently file for bankruptcy. At that juncture, Celsius disclosed an indebtedness of nearly $5 billion to creditors. The recent court-approved plan signifies a promising turn of events, offering creditors potential returns through staking yields and marking a substantial milestone in Celsius’s efforts to rebound and deliver value to its stakeholders.
