Celsius Exploring Solutions for Liquidity Crisis

0
43
Celsius Exploring Solutions for Liquidity Crisis

The company says it is exploring strategic transactions and liability restructuring.

Key Takeaways

  • Celsius has announced that it is exploring plans to help it regain solvency amidst its ongoing liquidity crisis.
  • Celsius says that it is exploring strategic transactions, liability restructuring, and other courses of action.
  • The company suspended withdrawals, swaps, and transfers on Sunday, June 12 with no reopening date.

Celsius has provided an update on its current service freeze and announced new plans to make a recovery.

Celsius Hints at Recovery Options

Celsius suspended withdrawals, swaps, and transfers on Sunday, June 12. Now, it is looking for ways to regain solvency.

The firm said today that it is taking “important steps to preserve and protect assets and explore options.”

Specifically, Celsius said that it could pursue strategic transactions. This typically refers to transactions with other companies in the same category as mergers and acquisitions.

Celsius also said today that it could restructure its liabilities. This implies the firm could either reduce or renegotiate terms of debt with various counterparties it is involved with.

However, those details are based on the standard definition of the terms, as Celsius did not describe its plans in full.

The company says it is exploring other options as well, noting that its “exhaustive explorations are complex and take time.” It said that it is working with experts within various areas.

Crisis Has Lasted Eighteen Days

Celsius is now 18 days into its liquidity crisis, and it has provided just one other update prior to today.

That update provided very little information about the situation beyond the fact that Celsius was exploring options. However, various other sources have since detailed possible developments.

Most significantly, other companies seem to be considering actions to keep the crypto lending company afloat. Nexo has made an unsolicited buyout proposal, while Goldman Sachs may be willing to buy Celsius assets for $2 billion. Reports today that FTX has passed on a deal to buy the firm.

Other reports point toward internal developments: some suggest the company has hired advisors in case of bankruptcy; others say that the firm is being investigated by state regulators.

The crisis seems to have no end in sight. Future developments will determine whether Celsius can re-open withdrawals or whether clients will need to settle through legal action.

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Celsius Had Double the Risk Profile of Traditional Banks: Report

News

Contrary to Celsius CEO Alex Mashinsky’s claims that Celsius was “not taking a tremendous risk,” a new report from The Wall Street Journal claims that the crypto lender had more…

Celsius Had Double the Risk Profile of Traditional Banks: Report

Celsius Has Hired Advisors in Case of Bankruptcy: WSJ

News

Celsius is hiring consultants to prepare for possible bankruptcy, according to reports from the Wall Street Journal. Celsius Could File For Bankruptcy Celsius has brought in consultants from the management…

Celsius Has Hired Advisors in Case of Bankruptcy: WSJ

Celsius Investigated by Regulators in Four Different States

Crypto lender Celsius is faced with an investigation from regulators from four different states for freezing customer accounts over solvency concerns. Multiple State Regulators Investigating Celsius Regulators have launched an…

Celsius Investigated by Regulators in Four Different States

Read More

LEAVE A REPLY

Please enter your comment!
Please enter your name here