The company Celsius Network said Monday that it could run out of money by October.
Insolvent crypto lender Celsius Network, which revealed on Monday that it was running out of money, said it had received several proposals to inject cash into the company and had won approval from the bank. US judge to sell the bitcoin (BTC) it mined.
Celsius lawyer Josh Sussberg disclosed the receipt of cash-injection offers during a Tuesday bankruptcy hearing but didn’t say how big the offers were. Moving hastily on this is “mission critical” for Celsius, Sussberg said. It’s customary for companies reorganizing in U.S. bankruptcy court to seek financing to keep their operations going.
Celsius, which went bankrupt this year after a crypto process prevented them from withdrawing their customers, needs liquidity. Financial projections in a court filing Monday suggest the company will run out of cash by October and hold $2.8 billion less in crypto than it owes its depositors. .
Before filing for bankruptcy, Celsius sold the bitcoins it mined to help fund its operations. Judge Martin Glenn’s approval on Tuesday opens the door for that to continue. A document filed before the hearing shows that Celsius mined $8.7 million worth of bitcoins in July; the company’s operating and capital costs exceed that level.