Celsius Network Secures Bankruptcy Court Approval for Restructuring Plan, Aims to Return Crypto to Customers and Establish New Entity

• U.S. bankruptcy court approves Celsius Network's restructuring plan, paving the way for recovery.
• Fahrenheit LLC, led by Arrington Capital, to manage the reorganized business, focusing on bitcoin mining and blockchain transaction validation.
• Celsius customers to receive partial repayment of deposited cryptocurrency and equity shares in the revamped company.

Restructuring Details Unveiled

Celsius Network's restructuring plan, approved by the U.S. bankruptcy court, represents a critical step towards returning cryptocurrency to customers and establishing a sustainable business model. Fahrenheit LLC, a consortium led by Arrington Capital, will manage the reorganized Celsius, shifting its focus to bitcoin mining and earning "staking" fees.

Emphasis on Bitcoin Mining and Staking Fees

Fahrenheit LLC's strategic shift aims to capitalize on the growing demand for bitcoin and the potential profitability of staking fees. Bitcoin mining involves the process of verifying and adding new transactions to the blockchain, while staking fees are rewards earned for locking up cryptocurrency assets to validate transactions on a network.

Reviving Celsius Amid Industry Setbacks

Celsius's restructuring plan positions the company to emerge from Chapter 11 bankruptcy in early 2024, unlike other crypto casualties like BlockFi and Voyager Digital. Celsius customers will receive a partial repayment of deposited cryptocurrency and equity shares in the reorganized company, offering a glimmer of hope amid the prolonged bear market.

Fahrenheit's Investment and Nasdaq Listing

Fahrenheit LLC's $50 million investment in Celsius and its plan to list the new company's stock on the Nasdaq demonstrate a commitment to creditors and shareholders. The Nasdaq listing provides Celsius customers with an opportunity to trade equity shares received through the bankruptcy recovery process.

Legal Ramifications and Token Valuation

The restructuring plan includes a settlement valuing Celsius's proprietary crypto token, CEL, at 25 cents. The settlement comes in the wake of a court-appointed examiner's report alleging that Celsius inflated the value of its own token. Legal actions against Celsius founder Alex Mashinsky, facing U.S. criminal charges and civil lawsuits for alleged misconduct, will continue despite his plea of not guilty.