Celsius set to burn $137.2M in 3 months as bankruptcy proceedings continue
The distressed crypto lender Celsius, which filed for Chapter 11 bankruptcy in July, filed new documents with the court on August 14 detailing its budget for August through October. did.
according to court documentCelsius forecasts negative net cash flow to $137.21 million in the three months to October.
Significant operating expenses, totaling $85.37 million during this period, are the main driver of the negative cash flow. Of this $85.37 million, lenders allocated about $13.95 million to pay his employees through October. According to the documents, he also has $57.27 million in hosting costs related to his mining activities.
Additionally, Celsius expects to spend about $33.48 million in restructuring activities alone by the end of October, the documents show.
Lender liquidity is expected to be around $66.39 million at the end of August as a result of reduced cash flow, according to the documents. However, by the end of October, it is expected to fall to his negative $33.92 million after falling to his $11.05 million in September.
In addition to spending forecasts, Celsius also submitted a coin report detailing crypto assets and liabilities. According to the documents, Celsius received her 100,669 bitcoin (BTC) deposits from users as of July 29. However, the lender said he only owned 14,578 BTC as of the end of July, worth about $348 million at current prices.
Lenders’ total bitcoin debt totaled 104,962 bitcoins, worth about $2.5 billion, the documents show. Celsius also said he owned $557 million worth of wrapped Bitcoin (wBTC) as of July 29.
Similarly, Celsius’ total Ethereum (ETH) debt reached 1,045,291 ETH, worth about $1.78 billion at current prices. However, at the end of July, the company owned less than half that amount of Ethereum and was valued at around $713 million at current prices. According to the documents, Celsius converted his 410,514 Ethereum tokens into Lido Stake Ethereum (stETH).
It is important to note that at the time of writing, both wBTC and stETH were trading slightly below Bitcoin and Ethereum, respectively.
Celsius also has a deficit in its US dollar coin (USDC) holdings. The lender owed $944.84 million worth of USDC tokens, while it only owned $278.75 million worth of USDC on July 29, the documents showed.
However, lenders have significantly exceeded CEL tokens, with just $323 million in debt and $761 million in holdings.
Lender total token debt reached $6.67 billion at the end of July, while digital assets only amounted to $3.82 billion. This put Celsius on his $2.84 billion deficit.
