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Ionic Digital Inc., a Bitcoin mining company co-owned by former Celsius clients, faces potential liquidation as shareholders grow frustrated with financial delays and management changes.
Liquidation Concerns Grow Amid Financial Difficulties
Some creditors are considering liquidation owing to worries about management and financial difficulties at Bitcoin mining company Ionic Digital Inc., which is co-owned by former Celsius Network clients.
Dissatisfaction among shareholders has been sparked by obstacles in Ionic's ambitions to go public, which were originally intended to recompense former Celsius consumers, Bloomberg reports.
Ionic's Nasdaq Listing Postponed Again
The possibility of Celsius Network's liquidation is being considered by some of its former clients who are now debtors of Ionic Digital Inc. The intention of Ionic to go public on the Nasdaq Stock Exchange has been postponed multiple times before this latest setback.
Concerns among shareholders over the board's capacity to steer the firm have been heightened by recent events, such as the May resignation of RSM US, Ionic's auditor, and the recent departure of CEO Matt Prusak. So, some of the creditors are trying to get the present board of directors fired.
A lawyer for some Celsius creditors, Joseph Sarachek, said at a court hearing that some stockholders want to liquidate Ionic's assets. These worries have been exacerbated by the news that Ionic's public listing would now be postponed until 2025.
As the court considered the possibility of liquidation, Ionic's attorney, Gregory Pesce, informed the public that the firm is solvent, citing positive cash flow and the company's possession of about $200 million in fiat and cryptocurrency as evidence.
According to Pesce, no shareholder group presently has the voting ability to force a sale or major board changes, and Ionic is not involved in any merger or acquisition operations.
Federal requirements mandate that the company hire a new auditor before it can complete the public listing process; nevertheless, the company is facing delays in this recruiting process despite these assurances. Frustration among shareholders has been rising due in part to this protracted delay.
Bitcoin Mining in Texas Key to Ionic’s Financial Recovery
Per Coingape, Ionic has been building Bitcoin mining facilities in Ward County, Texas, as part of Celsius Network's bankruptcy procedures to benefit creditors. One of the four buildings intended to house its mining operations is finished, while the other two are still in the planning stages. Some of the company's creditors have voiced their displeasure with the board's apparent incompetence and the glacial pace of progress.
Important to Ionic's plan to pay off former Celsius consumers and generate money are these mining operations. Some shareholders, however, see liquidation as a quicker way to recoup their investments due to the development and public listing delays.
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