The cryptocurrency lender Celsius Network, currently in bankruptcy, has revealed its plan to unstake a significant amount of its ethereum holdings. This action is part of the company’s ongoing restructuring efforts and is aimed at facilitating asset distribution to its creditors.
The decision to unstake ethereum is part of a broader strategy to manage the company’s assets during a challenging period. Celsius Network filed for Chapter 11 bankruptcy protection in July 2022 and has since faced a liquidity crisis due to the downturn in the crypto market. The unstaking process is designed to provide the necessary liquidity to cover costs incurred during the restructuring process and to ensure timely distributions to creditors.
The company announced on Friday that it will unstake its existing ethereum holdings, which have been providing valuable staking rewards income. The significant unstaking activity in the next few days will unlock ethereum to ensure timely distributions to creditors. According to staking data from the blockchain and crypto intelligence firm Nansen, Celsius has a notable 206,300 ethereum queued for unstaking withdrawal. This substantial withdrawal is expected to significantly impact the company’s asset management and represents a step towards meeting its commitments to creditors.
As part of a broader restructuring strategy, the company has decided to open its vault, allowing select users to withdraw a portion of their crypto assets until February 28, as authorized by the court’s settlement agreement. This strategy includes not only asset redistribution but also a shift towards alternative commercial paths.
In November 2023, Celsius announced a post-bankruptcy focus on bitcoin mining, indicating a shift in its business operations. This strategic pivot was approved by U.S. District Judge Martin Glenn of Manhattan at the end of December 2023.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Martin Glenn |
| Companies | Nansen, Celsius Network |
| Currencies | Bitcoin, Ethereum |
| Securities | None |
