Celsius’ Net Liabilities Surpass $2.8 Billion – New Bankruptcy Filing

In its latest Chapter 11 filing, Celsius reported it expects its net cash flow to reach negative $137.2 million by the end of October

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • Celsius has released its budget for the next three months, allocating $13.9 million to payroll and $57.3 million to mining
  • As of July 29, Celsius reported owing a total of $6.7 billion of token liabilities against just $3.8 billion in assets

As its bankruptcy proceedings continue, crypto lender Celsius has released its budget plans for the next three months. 

In court documents filed Aug. 14, Celsius reported it expects its net cash flow to reach negative $137.2 million by the end of October 2022. 

As of July 29, 2022, Celsius reported owing a total of $6.7 billion in token liabilities. The lender currently has $3.8 billion in token assets, including $761 million of its own token CEL, putting its deficit at $2.84 billion. 

The lender plans to rack up $85.4 million in operating expenses until the end of October, including $13.9 million toward paying employees and $57.3 million toward cryptocurrency mining operations, which CEO Alex Mashinsky is hopeful will generate sufficient revenue for the company in the future. 

Restructuring expenses alone will cost Celsius $33.5 million. 

Celsius expects its liquidity to fall to negative $33.9 million by the end of October. 

Mashinsky’s plans for Celsius’ mining business to help the firm get back on its feet are not sitting well with regulators or creditors. 

The Texas State Securities Board (TSSB) said earlier this month it does not want Celsius to go ahead with selling mined bitcoin because the lender has failed to outline how it plans to benefit creditors by offloading its crypto. 

Additionally, the official committee representing Celsius’ unsecured creditors moved to block its attempts to sell mined cryptocurrency, writing in an Aug. 11 court filing that Celsius’ plans to monetize its mining business are unclear. 

Sunday’s court filing comes one month after Mashinsky released his declaration in support of filing for Chapter 11 bankruptcy. 

“The Company made what, in hindsight, proved to be certain poor asset deployment decisions,” the July 14, 2022 declaration reads.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

kamino cover.jpg

Research

Kamino has solidified its position as the leading money market on Solana and is emerging as a DeFi bluechip. Although DeFi competition is fierce, Kamino has kept iterating on its product to provide the best-in-class UX, paired with a robust risk management framework and battle-tested infrastructure. Given the rollout of Kamino Lend V2, the protocol may scale aggressively over the coming months, penetrating previously untapped markets in Solana DeFi.

article-image

True sovereignty isn’t just about financial freedom

article-image

OpenSea co-founder Devin Finzer claims the new OpenSea is being rebuilt “from the ground up”

article-image

A pilot project from Swift, UBS and Chainlink demonstrates how tokenized funds can bridge traditional and crypto rails

article-image

Predictions that the US election will fuel bitcoin’s price are set to be tested

article-image

A tumultuous presidential campaign comes to an end

article-image

Republican challenger Bernie Moreno captured the industry’s attention when he went up against a key member of the so-called “anti-crypto army”