Embattled crypto lender Celsius Network is on track to run out of money by October, according to the firm’s latest Chapter 11 documents.
Filed on Aug. 14 to the U.S. Bankruptcy Court of the Southern District of New York, Celsius highlighted that it is expected to reach negative liquidity by October 2022 to approximately $34 million.
The lending platform, which held the trust of many across the world with life savings and retirement funds, was revealed to be in a much worse financial position than originally suggested in July.
Court documents revealed this week that Celsius’ three-month cash flow forecast, which shows steep declining liquidity, indicates the company will experience an approximate 80% drop in liquidity funds from August to September.
The forecast predicts Celsius will continue to report a negative cash flow and, by October, completely run out of money. Over the next three months, the company is expected to accumulate a negative net cash flow of $137.2 million.
Previous court documents revealed that Celsius “operates one of the largest mining enterprises in the United States” and prior to filing for bankruptcy, had expansion plans to “mine Bitcoin by acquiring and making operational additional mining rigs.”
Last week many got very upset with me as I said @CelsiusNetwork would run out of money & solutions needed to be acted upon faster. I was told I don’t understand Chapter 11. They have now confirmed they run out of money by October. https://t.co/CyzjgKpId7 pic.twitter.com/vBIRIGEmG2
— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) August 15, 2022
These findings come after Reuters reported last month that the struggling crypto lending platform was approved by U.S. Bankruptcy judge Martin Glenn to build a new Bitcoin mining facility using existing funds up to the amount of $3.7 million, with an additional amount of $1.5 million approved to be spent on “customs and duties on imported Bitcoin mining rigs.”
The document stated that Celsius is mining approximately 14.2 BTC per day, owning 80,850 mining rigs, in which 43,632 were operational. Despite the alarming numbers that their cash flow forecast suggests, the amount of Bitcoin the company predicts it will mine each year is more promising. Having mined a total of 3,114 BTC in 2021, Celsius projected mining more than 10,100 BTC in 2022, with a steady rise to 15,000 BTC in 2023.
Despite Celsius continuing their mining activities, it has ceased monetizing the Bitcoin…
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