Celsius Amasses 30 Potential Bidders for its Assets, Withdrawal Motion Approved

The bankrupt lender, Celsius, plans to auction off its assets in January, and it has been given permission to return some customer funds.

Celsius Network, a bankrupt cryptocurrency lender, has attracted 30 potential bidders for its various assets, including its retail platform and mining business.

According to a company presentation filed on December 20, more than 125 parties have been contacted since September, with 30 potential bidders signing non-disclosure agreements — a legal contract used to protect sensitive information about a company or the bidding terms that is usually required during negotiations.

Celsius stated that it has received multiple bids proposing a wide range of potential transactions and business structures to acquire its assets, such as migrating Celsius customers to the acquirer’s platform in exchange for a haircut on their assets.

The lending platform also disclosed that it had received several single asset bids.

With the bidding deadline passed on December 12, the auction for Celsius’ various assets has been pushed back from the original date of December 15 to January 10, according to earlier documents filed by Celsius.

According to the most recent presentation, the company held crypto worth approximately $2.6 billion as of Nov. 25, but even when this is combined with all of its non-crypto assets, Celsius is still $1.2 billion short of being able to pay off all debts.

Its ongoing mining operations, on the other hand, have been successful, with Celsius claiming that it has generated positive operating cash flow every month this year as it deploys more mining rigs.

In related news, on Dec. 20, bankruptcy judge Martin Glenn granted Celsius’s Sept. 1 motion, allowing them to reopen withdrawals for a subset of their customers.

Assets that have only ever been held in the Custody Program are eligible for withdrawal, as are funds transferred from Earn or Borrow Programs into the Custody Program within 90 days of Celsius filing for bankruptcy on July 13.

The order also applies to “ineligible Withhold Assets,” which will be determined following meetings between Celsius, the Withhold Ad Hoc Group, and the Celsius Official Committee of Unsecured Creditors.