Celsius Network Obtains Court Approval for Bitcoin Mining Business Shift

Celsius Network LLC is a bankrupt cryptocurrency lending company that aims to return to business but will offer a different kind of service. The New Jersey-headquartered firm has submitted its revised bankruptcy exit plan and revealed it will shift to Bitcoin mining.

Winning Ruling for Celsius Network

According to Reuters, U.S. Bankruptcy Judge Martin Glenn in Manhattan said this week that Celsius network’s plan was approved because it has outlined measures and moves that offer enough flexibility to let the company switch to a backup plan after it faced a roadblock with the U.S. Securities and Exchange Commission (SEC).

The bankruptcy judge accepted the crypto lender’s plan to transform its business into Bitcoin mining. The new order also indicated that Celsius Network may turn away from its previously approved bankruptcy plan since the customers and the creditors were no worse off under the new restructuring.

What to Expect from the Company’s Business Switch

Celsius Network’s pivot as a Bitcoin miner also means that the company will have to part ways with some of its outside bidders who were previously picked and named to supervise the newly restructured organization. This will also leave the U.S. Bitcoin Corp. mining company as the sole in charge of running the new Celsius Network mining business that the creditors own.

Meanwhile, CoinGape reported that the original exit plan envisioned the birth of a new company so Celsius Network may expand to mining and other businesses under the management of Fahrenheit consortium. However, this plan was scrutinized by the U.S. SEC, and the shift to Bitcoin mining is the next best step to get back on its feet. Thus, it took this route in the end and will soon become a Bitcoin mining firm.

Photo by: Celsius Network Blog

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