Celsius Network continues to fight bankruptcy, and there have been some interesting findings in the court filings as the cases progressed. The most recent of these was the company’s struggle to finance its day-to-day operations. After current CFO Chris Ferraro withdrew his motion to repurchase former CFO Rod Bolger at $92,000 a month, he stepped forward to address circulating reports that the company would run out of money in October.
Good For Celsius 2022
A recent conversation with creditors saw Celsius’s CFO address allegations that the company’s cash flow was dangerously low. During the call, Ferraro spoke on behalf of CEO Alex Mashinsky and assured creditors that the company still had enough money to operate.
Instead of running out of money between September and October, Ferraro announced that Celsius still had enough money to operate by the end of 2022. The CFO explained that Celsius has $81 million available for day-to-day operations.
When asked where the money would come from, crypto exchange Bitfinex revealed that it had secured $61 million in loans for its struggling lending platform. Additionally, he expected to save about $20 million by selling some mining rigs, as well as tax savings.
Celsius was able to delay getting more loans as it went through bankruptcy proceedings, but it seems to have reached its limit. This is understandable because obtaining a loan during bankruptcy can be disastrous for a company due to its complexity.
Users Waiting for Decision
Currently, Celsius Network users are holding their breath, awaiting the outcome of the case. But looking at the previous bankruptcy proceedings of crypto companies in the past, users will definitely wait a while for that.
One of the things that users of the lending platform are eagerly waiting for is the launch of a new claim form. This new claim form differs from the previous one published by Stretto in that it allows users to make claims for the amount of crypto held on the platform, not dollar value.
As for Celsius, the company continues to turn to crypto mining as a way to try to reimburse users. In July, the lending platform announced plans to increase its annual BTC production to 15,000. This plan, while not entirely bad, will certainly see it take several years for the platform to pay back all its creditors. It doesn’t help the company’s cash flow stay negative, and it has to pay operating costs to keep operations afloat.
CEL token has benefited greatly from bankruptcy proceedings. With the majority of its supply locked in the Celsius platform, the CEL token has risen to over $2. It is currently trading at $2.20 at the time of this writing and has a market cap of $579 million.