While Celsius announced last July to focus some of its business on cryptocurrency mining as part of its restructuring, we learn that Celsius Mining, its mining arm, will sell 2,700 of its machines. The sales contract, which exceeds $1.3 million, was signed by investment firm Touzi Capital.
Celsius sells bitcoin mining machines
The prospect of a way out for Celsius it seems to shrink. And for good reason, the mining branch of the company went bankrupt to sell around 2,700 of its Bitcoin (BTC) mining machines.which represents over $1.3 million.
A surprising decision as announced by Celsius last July direct its restructuring towards BTC mining under its protection under US Chapter 11. However, the environment is currently so unfavorable for cryptocurrency minersmostly because of the cost of energy, which Celsius was probably losing more money so far than it was making on this business.
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The machines sold by Celsius are all M30S modelswith a hash rate variable from 84 to 92 TH/s and for a variable price from 476.28 to 521.64 dollars depending on their performance.
Extract from document filed by Celsius
According to the Jan. 11 document Celsius filed in the United States Bankruptcy Court for the Southern District of New York, it is the Touzi Capital company that will buy these mining machines. Touzi is a company specializing in various fields, including real estate, but also invests in Bitcoin mining. He already owns several mines in the United States.
Also according to the document, it was Touzi who managed to make the most substantial offer to obtain this equipment. The company was chosen after Celsius spoke to “several brokers and market participants”.
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Financial situation of Celsius
According to Celsius’s filing, the proceeds from this sale will go towards “general and corporate expenses.” An explanation with rather vague outlines, which moreover earned the legal opposition of VĂctor Ubierna de las Heras, creditor of Celsius, which appealed to the relevant bankruptcy court :
“They say the intended use of the proceeds from the sale is for ‘general and business expenses.’ It’s like saying nothing.Overhead and business expenses can mean everything and nothing at the same time. […] Will Celsius use the proceeds from the sale to repay its creditors? Will Celsius pay the rent with this amount? We cannot know by reading the contents of the document. »
It is a double jeopardy for Celsius, which has recently been seen forced to shut down 37,000 of its mining machines leased from Core Scientific, the company is no longer able to meet their operating costs.
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Passionate about the world of decentralized finance and the innovations brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilian Prue
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