Not deterred by the market downturn, Celsius Network plans to construct a new Bitcoin mining facility. It wants to financially restructure the business.
Celsius Network plans to spend $3.7 million to construct a new facility and another $1.5 million on customs and duties for importing Bitcoin mining rigs. The company has already received approval for this effort. Currently, it operates over 43,000 mining rigs and plans to increase it to 112,000 by the second quarter of 2023.
Reports revealed that Celsius’ assets plunged to $4.3 billion from $22.1 billion between March 30 and July 14. Third-party liquidations amounted to $1 billion. Celsius took several proactive steps to safeguard and preserve assets, including freezing services for customers. The company wants to preserve value while negotiating a comprehensive restructuring transaction with stakeholders. It alludes to the Bitcoin mining operations to mine – this will be used to fund more mining and increase its Bitcoin holdings.
Moreover, Celsius is looking at asset sales and third-party investment opportunities. It will provide customers with the option to recover either cash at discount or remain long crypto; maximize returns for stakeholders, and reorganize the company’s business. Once considered a giant in the crypto lending space, Celsius’s collapse caused a huge stir in the market. Many investors want reparations and some are worried that it will take years for the customers to receive their funds.
Meanwhile, Celsius has recorded a piling of lawsuits, with the latest class-action lawsuit from an Arkansas resident. Investors and analysts are looking at the company closely and monitoring developments.