SNEAK PEEK
- Celsius admitted losing over $15.8 million in Terra’s collapse.
- Majority of the drop happened due to the collapse in crypto price.
- Celsius is betting on its also-indebted mining operation to fill the $1.2 billion hole in its balance sheet.
According to the attorney of Celsius, the crypto lender has about half a million creditors owing more than $5 billion.
The company’s balance sheet shows a $1.2 billion hole and the last ones to get paid back are likely to be the retail depositors who held their crypto in Celsius accounts.
As of July 14, digital assets of Celsius holdings reduced to just $1.7 billion, which is way down from $14.6 billion since the March end. Moreover, Celsius owes $4.7 billion to its customers, as per the documents.
Celsius has $170 million in cash in a bank account; however, the remaining assets are tied up in mining equipment worth $720 million, outstanding loans worth $620 million and other assets worth $450 million.
The documents also account for $600 million in the CEL token of the platform, which is higher than the coin’s total market capitalization.
Moving on the remaining losses, they added up as:
- Until June 12, users withdrew $1.9 billion from deposits.
- Assets were reduced by $1.9 billion due to loan redemptions and liquidations.
- While liquidating a loan to Celsius, Tether set back the firm by an extra $900 million while
- The company also lost $100 million from investments.
StakeHound, the ethereum staking platform, lost access to 35,000 ETH that was deposited by Celsius to earn a yield.
Celsius’ lawyers have asked the court to approve about $5 million, which will help to accomplish the construction of the mining center in Texas and pay duties on mining rigs.
The mining subsidiary was mining over 14.2 bitcoins each day and aimed to mine 10,100 bitcoins in 2022, as told by Celsius’ lead attorney, Pat Nash.
If Celsius, as per its promise, mines 10,100 this year, it would yield only $225 million, which is just a fraction to make Celsius solvent.
According to Nash, Celsius has about 500,000 depositors and 300,000 among them have $100 plus worth of crypto in their accounts.
The next round of hearing will be on August 10th.
We are scheduled to appear before the Court again on August 10th.
— Celsius (@CelsiusNetwork) July 19, 2022
In a recent move, Celsius Network began financial restructuring for business stabilization.
Previously, Today NFT News reported that Celsius Network’s first hearing was to take place on July 18.
