A situation that is finally becoming clear after even higher amounts have been announced in recent days. The amount of debt will be challenging to repay, considering the fact that many liabilities are expected to be valued in cryptocurrency, and therefore the growth of the market will not be able to break even. But let’s take a closer look at what is happening in a company whose collapse has become a symbol of the current market crisis.
The situation is quite complicated. At the beginning, it amounts to about 4.7 billion for users, 210 million for funds, 180 million for custodial services and, in addition, 390 million for unspecified organizations. The debt position is about 5,500 million.
Liquid assets of Celsius
A significant part of Celsius’ assets is illiquid. Against this debt position there will be assets worth about 4,300 million, consisting of: bank cash in the amount of $170 million, about $1,750 million in cryptocurrencies, $720 million in mining assets, in addition to what is in storage, accounts receivable from third parties and other utilities, also taking into account the CEL tokens that the group still has in its cash.
In our opinion, it is becoming extremely difficult to restore the situation, since the crypto assets owned by the group would have to more or less double in price in order to provide sufficient liquidity to cover the deficit.
In all likelihood, someone will remain dissatisfied, despite the possibility of restoring the group through loans from third parties. This hypothesis was put forward just a few weeks ago in connection with the unconfirmed commitment of Goldman Sachs, as well as the alleged interest from FTX.
And it is the FTX position that opens up some doubts both in the present and in the future of Celsius. After all, one of the funds that allegedly has important positions in Celsius can be traced, albeit in a roundabout way, to FTX itself.
Who is behind Lantern Ventures?
There were rumors that among the creditors there was a fund in the Cayman Islands, namely Pharos USD, worth about 81 million, a fund about which very little is known, except for the email of the person who registered it. The fund is headed by a certain Lantern Ventures, it is unclear whether its connection with the London crypto trader of the same name can be traced.
Interestingly, many people at Lantern Ventures have pretty obvious ties to FTX, it’s unclear in what role today. Thus, the mystery thickens, but without the currently known positions becoming a source of concern for FTX.
It should also take into account the fact that many of the assets that Celsius can count on are not liquid, for example, 700+ million attributed to its mining activities. This further complicates the possibility of restoring sufficient liquidity to cover the debt attributed to it.