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Celsius Considers Fresh Financing Offers to Escape Bankruptcy

2 mins
Updated by Geraint Price
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In Brief

  • To avoid bankruptcy, Celsius needs to raise more money through restructuring or selling its business.
  • A lawyer for crypto lender Celsius Network said that the company has received multiple offers of cash to help fund its restructuring process.
  • Celsius froze all user withdrawals in June before filing for bankruptcy last month.
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Celsius Network has received offers of fresh cash to help it fund a potential restructuring process, a lawyer for the company said.

The unsecured collector’s committee will meet Celsius next week, and are working “vigorously” on the case ahead, according to a tweet.

Celsius filed for bankruptcy protection last month, after having placed a moratorium on user withdrawals in June. The company is currently working with bankruptcy lawyers to explore its options for restructuring.

According to a Bloomberg report, the company is weighing financing packages of various shapes and sizes from different parties. It is currently unclear whether these offers are equity-based or debt-based, or what the terms of any such deal would be.

Ripple’s involvement

Ripple Labs is also interested in buying the crypto lender Celsius Network. Ripple, a San Francisco-based blockchain firm, has raised $300 million in 14 rounds since its inception, according to Crunchbase. The firm has made only 25 investments on the platform, with its most recent investment in Supermojo last month.

Ripple’s total sales of its XRP cryptocurrency, net of purchases, were $408.9 million. According to July numbers cited in the report. That is an increase from $273.27 million last quarter. Meanwhile, last week’s digital assets investment report showed that Ripple had minor inflows of $200,000 for its XRP asset.

If the deal goes through, it would be one of the largest investments by a Ripple-affiliated entity in another company. Ripple has been an active investor in the digital assets and blockchain space, both through its own investment arm.

Celsius at risk of running out of money

As per the court documents, Celsius’ liquidity can only support it up until Oct. The company’s operating costs and capital expenditures will turn its cash flow negative by $34 million, according to the filing.

It also shows that the company would lose $137 million between Aug and Oct, primarily due to its mining operations.


In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

Wahid Pessarlay
Wahid loves to write, especially about Crypto and Blockchain. He started his blogging journey in 2017 and turned to crypto in 2019. Wahid is interested in tech, chess and DeFi. He...