Celsius Considers Fresh Financing Offers to Escape Bankruptcy
Celsius Network has received offers of fresh cash to help it fund a potential restructuring process, a lawyer for the company said.
The unsecured collector’s committee will meet Celsius next week, and are working “vigorously” on the case ahead, according to a tweet.
Celsius filed forprotection last month, after having placed a moratorium on user withdrawals in June. The company is currently working with bankruptcy lawyers to explore its options for restructuring.
According to a Bloomberg report, the company is weighing financing packages of various shapes and sizes from different parties. It is currently unclear whether these offers are equity-based or debt-based, or what the terms of any such deal would be.
is also interested in buying the crypto lender Celsius Network. Ripple, a San Francisco-based blockchain firm, has raised $300 million in 14 rounds since its inception, according to Crunchbase. The firm has made only 25 investments on the platform, with its most recent investment in Supermojo last month.
Ripple’s total sales of its XRP cryptocurrency, net of purchases, were $408.9 million. According to July numbersin the report. That is an increase from $273.27 million last quarter. Meanwhile, last week’s digital assets investment report showed that Ripple had minor inflows of $200,000 for its XRP asset.
If the deal goes through, it would be one of the largest investments by a Ripple-affiliated entity in another company. Ripple has been an active investor in the digital assets and blockchain space, both through its own investment arm.
Celsius at risk of running out of money
As per the court documents, Celsius’ liquidity can only support it up until Oct. The company’s operating costs and capital expenditures will turn its cash flow negative by $34 million, according to the filing.
It also shows that the company would lose $137 million between Aug and Oct, primarily due to its mining operations.
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