Celsius Network, a prominent cryptocurrency lending platform, has obtained court approval to convert its altcoins into Bitcoin (BTC) and Ethereum (ETH), the two leading digital currencies. The conversion process is scheduled to commence on July 1, according to a court filing on June 30.
The decision, approved by Bankruptcy Judge Martin Glenn of the Southern District of New York, follows discussions between Celsius and the Securities and Exchange Commission (SEC). The move is aimed at stabilizing the company’s financial position amidst ongoing bankruptcy proceedings.
To ensure transparency and accountability during this critical phase, the court has mandated that the bankrupt firm submit a monthly “Budget and Coin Report.” This report will provide details on the number of altcoins converted into BTC and ETH, ensuring clear visibility into Celsius’ operations.
Celsius currently holds a significant altcoin portfolio valued at approximately $187.04 million, which includes assets such as BNB, Celsius, MATIC, FTT, and AVAX, according to data from Arkham Intelligence. Additionally, the lender holds assets worth $409.03 million in BTC and ETH. As a result, the court’s decision not only alters the composition of Celsius’ cryptocurrency holdings but also signifies a substantial shift in its financial strategy.
The cryptocurrency industry as a whole will closely observe Celsius Network’s conversion process to assess its impact on the company’s recovery efforts and the broader market dynamics. This development highlights the evolving landscape of cryptocurrency management and the measures taken by companies to navigate challenging financial circumstances.
Compiled by Coinbold