{"id":607036,"date":"2023-02-11T23:49:22","date_gmt":"2023-02-12T05:49:22","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/02\/11\/bankrupt-celsius-aims-to-raise-14-4-million-from-bitcoin-mining-rig-credits-and-coupons\/"},"modified":"2023-02-11T23:49:22","modified_gmt":"2023-02-12T05:49:22","slug":"bankrupt-celsius-aims-to-raise-14-4-million-from-bitcoin-mining-rig-credits-and-coupons","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/02\/11\/bankrupt-celsius-aims-to-raise-14-4-million-from-bitcoin-mining-rig-credits-and-coupons\/","title":{"rendered":"Bankrupt Celsius Aims to Raise $14.4 Million From Bitcoin Mining Rig Credits and Coupons"},"content":{"rendered":"
\n<\/header>\n

\"Bankrupt\n<\/p>\n

Defunct cryptocurrency lender Celsius aims to secure more than $14 million from credits and coupons backed by Bitmain, according to an interim CEO Christopher Ferraro in a bankruptcy court filing dated Feb. 9, 2023. Ferraro stated in the filing that the \u201ccoupons currently provide no utility to the debtors\u2019 mining business.\u201d<\/strong><\/p>\n

Celsius Interim CEO Outlines Plan to Raise Funds Through Bitmain Credits and Coupons<\/h2>\n

According to Christopher Ferraro, interim CEO of Celsius<\/a>, the bankrupt cryptocurrency lending firm is seeking to raise $14.4 million from a cache of Bitmain credits and coupons worth millions. The company intends to sell the coupons for $7.4 million and the credits for $7 million. The Bitmain coupons offer the holder a 10-30% discount on future purchases from the company, while the credits provide the owners with 100% face value cash redemption from the mining rig manufacturer.<\/p>\n

\u201cI do not foresee the debtors being interested in using the Bitmain Coupons to acquire mining rigs,\u201d Ferraro wrote in the court filing<\/a>. \u201cTherefore, the Bitmain Coupons provide no utility to the debtors\u2019 estates because the debtors do not intend to use these Bitmain Coupons to purchase new mining rigs prior to their expiration. The sale of the Bitmain Coupons, on the other hand, would allow the debtors to realize approximately $7.4 million at a time when liquidity is needed the most,\u201d the Celsius interim CEO added.<\/p>\n

Ferraro continued:<\/p>\n

\n

The value of Bitmain Coupons on the secondary market depreciates significantly as the Bitmain Coupons\u2019 expiration dates near, with the rate of depreciation accelerating as the expiration nears.<\/p>\n<\/blockquote>\n

The interim CEO of Celsius stated that the debtors are currently in discussions with \u201csix potential buyers.\u201d While the Bitmain credits do not have an expiration date like the coupons, they are not transferable due to Bitmain\u2019s updated 2023 terms of service that restrict the transfer of the credits. \u201cAs the Bitmain credits cannot be assigned directly, the debtors plan to use the credits to purchase mining rigs on behalf of third-party buyers,\u201d Ferraro told the court. This third-party approach will allow Celsius to \u201crealize approximately 85-88% of the face value\u201d of the Bitmain credits.\u201d<\/p>\n

Ferraro argues that it wouldn\u2019t be prudent to retain the Bitmain credits, due to the potential loss in value from fluctuations in energy and bitcoin prices, and the possibility that Bitmain may alter the rules for using these credits. Ferraro views it as a \u201cgolden opportunity\u201d for the debtors to sell the credits for immediate liquidity, rather than retaining something that might ultimately hold no value for them in the long run.<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
\n

$14 million<\/a>, $14.4 million<\/a>, $7.4 million<\/a>, 10-30% discount<\/a>, 100% face value cash redemption<\/a>, 2023 terms of service<\/a>, 7 million<\/a>, 85-88% face value<\/a>, bankruptcy court filing<\/a>, bitcoin prices<\/a>, Bitmain<\/a>, Bitmain coupons<\/a>, Bitmain credits<\/a>, Bitmain Miners<\/a>, cache<\/a>, Celsius<\/a>, Christopher Ferraro<\/a>, coupons<\/a>, Court Filing<\/a>, Credits<\/a>, cryptocurrency lender<\/a>, debtors<\/a>, depreciation<\/a>, discussions<\/a>, energy prices<\/a>, expiration date<\/a>, future purchases<\/a>, golden opportunity<\/a>, holder<\/a>, immediate liquidity<\/a>, interim CEO<\/a>, mining business<\/a>, mining rig manufacturer<\/a>, Secondary Market<\/a>, six potential buyers<\/a>, third-party approach<\/a>, transferable<\/a>, utility<\/a><\/p>\n<\/div>\n<\/div>\n

What are your thoughts on Celsius\u2019s plan to raise funds through Bitmain credits and coupons? Share your thoughts about this subject in the comments section below.<\/strong><\/em><\/p>\n

\n

\n<\/p>\n

\n
\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.<\/p>\n<\/div>\n<\/div>\n

\n
\n


\n\"Report: <\/a><\/p>\n<\/div>\n

\n


\n <\/a><\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n

Read More<\/a>
\n Jamie Redman<\/p>\n","protected":false},"excerpt":{"rendered":"

Defunct cryptocurrency lender Celsius aims to secure more than $14 million from credits and coupons backed by Bitmain, according to an interim CEO Christopher Ferraro in a bankruptcy court filing dated Feb. 9, 2023. Ferraro stated in the filing that the \u201ccoupons currently provide no utility to the debtors\u2019 mining business.\u201d Celsius Interim CEO Outlines<\/p>\n","protected":false},"author":1,"featured_media":607037,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2896,58047],"tags":[],"class_list":{"0":"post-607036","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bankrupt","8":"category-celsius"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/607036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=607036"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/607036\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/607037"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=607036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=607036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=607036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}