While Celsius announced last July to concentrate part of its activity in cryptocurrency mining as part of its restructuring, we learn that Celsius Mining, its mining branch, will sell 2,700 of its machines. The sale contract, which exceeds 1.3 million dollars, was signed by the investment company Touzi Capital.
Celsius sells bitcoin mining machines
The prospect of a way out for Celsius seems to be shrinking. And for good reason, the mining branch of the bankrupt company will sell about 2,700 of its Bitcoin (BTC) mining machineswhich represents over $1.3 million.
A surprising decision insofar as Celsius announced last July to direct its restructuring towards the mining of BTC as part of its protection under Chapter 11 of the United States. Nevertheless, the environment is currently so unfavorable for cryptocurrency minersespecially due to the cost of energy, that Celsius was probably losing more money so far than it earned with this activity.
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The machines sold by Celsius are all M30S models, with a hashrate varying from 84 to 92 TH/s and for a price varying from 476.28 to 521.64 dollars depending on their performance.
Excerpt from the document filed by Celsius
According to the January 11 document filed by Celsius with the U.S. Bankruptcy Court for the Southern District of New York, it is the company Touzi Capital which will acquire these mining machines. Touzi is a company that specializes in various fields, including real estate, but also invests in Bitcoin mining. It already owns several mining farms in the United States.
Still 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 with “several brokers and market participants”.
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Celsius’ financial situation
According to the document filed by Celsius, the proceeds of this sale will be intended for “general and business expenses”. An explanation with rather vague contours, which moreover earned a legal opposition from Víctor Ubierna de las Heras, a creditor of Celsius, who appealed to the relevant bankruptcy court :
“They say the intended use of proceeds from the sale is for ‘general and business expenses.’ It’s like not saying anything. 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 his rent with this amount? You can’t tell by reading the contents of the document. »
It’s a double penalty for Celsius, which was recently forced to turn off 37,000 of its mining machines that were rented from Core Scientific, the company is no longer able to meet their operating costs.
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Source: Court document
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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