Another news on Celsius appeared in the media. This time it`s about the official permission of the US court to sell Bitcoin, which it extracted by mining.
A good sign for users? It depends on circumstances. In fact, as we have already written earlier, the situation seems to be practically compromised and has practically no possibilities for recovery. And this step looks more like a necessity than an opportunity. The fact remains that for all investors and depositors in Bitcoin and other cryptocurrencies, this will be an important lesson, not least in order to learn how to behave correctly in the future.
Let’s clarify this issue, given that the group and its CEO have been charged, which, if confirmed, could mean further litigation and further legal problems.
Few people may know that Celsius is also engaged in Bitcoin mining in parallel and, obviously, earns coins on these operations. Coins that have a market value and can replenish the cash drawer, which will be completely empty by next October.
And so, there is a court permit, but a restrictive one.
Therefore, the judge’s decision to allow the company (which, according to Chapter 11, is no longer the master of its fate) to sell these Bitcoins should be interpreted in this light: this is not an attempt to return to profit, but simply the need to get liquidity to cope with this very difficult situation. A situation in which court has a legally prescribed task to preserve the assets of the group as much as possible. What for? To satisfy the numerous creditors who have already registered to participate in the process.
Mining income only
Among other things, this solution has a clearly narrow scope of application: in fact, the company will simply be able to continue mining and selling mined Bitcoins without being able to issue securities, even with a basic Bitcoin, and without being able to freely dispose of crypto assets that it already owns.
In fact, there was a corresponding petition, but the judge rejected it, considering that it damages the possibility of creditors receiving adequate compensation. This also happens when accounting books with billions of debts of large and small companies, as well as many individuals, are transferred to the court.
Thus, the situation remains difficult and, fortunately, we can add that the CEO of Celsius has little to solve. If the grave accusations made by Financial Ti mes are confirmed, it will be the least that can be done to restore confidence in the bankruptcy procedure and the management of the courts of bankrupt companies.
Will these Bitcoin sales have a negative impact on the asset price? These sales are absolutely minimal for the volumes that Bitcoin has. Therefore, those who invest in BTC can safely ignore this news, which is rather neutral in terms of its impact on prices.