Crypto Lending Platform Celsius Now Has Enough Cash To Last Until Year End
- The Chief Financial Officer, Chris Ferraro, of crypto lending firm Celsius, has confirmed that it has enough cash to last until year-end.
- It has seen fresh funds from the $61 million in loans made to crypto exchange Bitfinex which will be maturing over the next few weeks.
Bankrupt crypto lending firm Celsius confirmed in a recent bankruptcy hearing call with creditors that it has enough cash to last unitl the end of the year. Chief Financial Officer Chris Ferraro testified the same in front of the creditors in the bankruptcy court where it had filed for the same.
According to a previous report from BitcoinWisdom, the crypto lending platform Celsius had estimated that it would run out of cash by the end of the month of October but that is not the case according to court filings submitted on Monday by Kirkland & Ellis, the restructuring lawyers that the firm hired following its bankruptcy declaration.
According to the CFO, fresh funds are coming from the $61 million in loans made to crypto exchange Bitfinex which will be maturing over the next few weeks. The crypto lending firm has also saved roughly $20 million in savings on sales and use taxes on mining rigs that it had purchased.
As per the statement from Ferraro, Celsius is expected to be cash-flow positive at the beginning of 2023. Interestingly, both Ferraro and Celsius CEO Adam Mashinky were on the call with the creditors but it was only the CFO that answered all the questions that were put forth in the hearing.
Ferraro also revealed that since the last filing from Celsius on July 26, the crypto lending firm has spent $40 million of its cash balance primarily on building its mining site in Texas and on payroll as well. Interestingly, earlier this week, Celsius was also approved to sell its mined Bitcoin by authorities to help pay operating costs.
It was also revealed that Celsius’ mining arm generated over $8.7 million worth of bitcoin in July but the firm’s liabilities exceeded the current operational and capital costs. Moreover, Ferraro also confirmed that the firm has ceased all retail activities including halting interest payments to customers on their loans, nor liquidating them.
As reported by BitcoinWisdom, one of the victims of Celsius’ bankruptcy was Canadian pension fund CDPQ (Caisse de dépôt et placement du Québec). The CDPQ wrote off its $200 million investment on the crypto lending firm while stating that there were challenges in regards to crypto assets, but perhaps “we underestimated those challenges.”
On the other hand, blockchain payments company Ripple Labs Inc has confirmed it’s interest in purchasing the assets of the bankrupt crypto lender.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
