19 Jul 2022

Celsius files for bankruptcy, noting a $1.2 billion balance sheet hole

Celsius filed for a Chapter 11 bankruptcy last week, disclosing a $1.2bn hole in its balance sheet and substantial asset exposure to Celsius’ native token.
Source: Tradingview
Last week, Celsius became the second crypto lender to file a Chapter 11 bankruptcy a month after blocking withdrawals. Celsius reportedly has $167m cash at hand, which they seek to use during the reorganization after the Chapter 11 filing.The bankruptcy filing disclosed Celsius’ largest creditors, with Pharos USD Fund SP being the largest creditor with an unsecured claim of $81m. Later documentation revealed a $1.2 billion hole in Celsius’ balance sheet, with $5.5bn in customer liabilities and $4.3bn worth of assets, of which $600m is related to the company’s CEL holdings and $720m is related to Celsius’ mining branch.Per previous reports, Celsius Mining, has invested in mining equipment and equity investments in Core Scientific, Rhodium Enterprises, and Luxor Technologies. As of November 2021, Celsius stated that they had an operational mining fleet of about 22,000 bitcoin ASIC miners. The substantial hashrate decline experienced recently may be caused by Celsius’ restructuring. In addition to Celsius’ and Voyager’s Chapter 11’s, Vauld and Babel Finance have frozen withdrawals. Recently leaked documents illustrate the impact of Three Arrows Capital’s collapse on other creditors .
Court document shed light on Three Arrows Capital’s vast claims
Three Arrows Capital’s creditors lent the fund $3.5bn. Genesis Asia Pacific is the largest creditor, having lent $2.3bn to the now bankrupt fund.
Source: Leaked Affidavits
A massive 1157-page legal document covering the 3AC liquidation was published yesterday, showing that 27 firms had lent Three Arrows Capital $3.575bn, with Genesis being the biggest creditor. Genesis has stated that the firm has no remaining exposure to Three Arrows Capital after Digital Currency Group took on some of Genesis’ liabilities. Now bankrupt broker Voyager is the second-largest creditor with a $685.5m claim on Three Arrows Capital.
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