Celsius announced that it has started to retrieve and rebalance its assets, including releasing the current Ethereum collateral, to ensure sufficient liquidity for asset allocation. According to the DeBank platform, Celsius’ collateral address holds approximately 206,300 Ether, valued at around $460 million.
(Brief summary:
Celsius transforms mining Bitcoin to “repay debt”! Court approves initiation of mining company, with an initial capital of £225 million.
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(Background information:
Celsius is about to repay “£20.3 billion BTC ETH” to users! App to be closed within 90 days, with US financial flow PayPal in charge.
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The bankrupt cryptocurrency lending platform, Celsius Network, is currently undergoing its restructuring plan and obtained court approval last week to transform into a new publicly listed Bitcoin mining company called “Mining NewCo.” The new company has an initial capital of $225 million and aims to increase debt repayment to creditors.
Today, Celsius announced on X that it has started to retrieve and rebalance its assets, including releasing the current Ethereum collateral, to ensure sufficient liquidity for asset allocation. These collateralized ETH provide significant staking reward income, helping offset some of the costs incurred during the restructuring process.
Celsius stated that eligible creditors will receive “physical” distributions of BTC and ETH according to the approved plan.
How much Ether will be released from collateral?
Celsius has not yet disclosed the quantity of Ether it holds, but according to information from the on-chain analysis account “lookonchain,” Celsius’ collateral address displayed on the DeBank platform holds approximately 206,300 Ether, valued at around $460 million.
According to their statement today, these Ether will be released from collateral in the coming days to ensure timely distribution to creditors. Since this is a physical distribution, it will not directly exert selling pressure on the market. However, it is not ruled out that creditors may sell the distributed assets upon receipt.
(Source: DeBank)
How long does it take to release the collateral?
Although Ethereum now allows users to withdraw collateralized Ether at any time, this process is not immediate. For entities like Celsius that directly engage in solo-staking, the time required to cancel the collateral will depend on the amount of ETH they have staked and the number of validators waiting to be withdrawn from the entire network.
Currently, according to data from the wen merge platform, the time required for validator node withdrawal is approximately 5 to 6 days. Therefore, if Celsius intends to release all of its collateralized Ether in the next few days, they may need to wait at least 5-6 days to distribute these ETH to creditors.
(Source: wen merge)
Related Reports:
Celsius restructuring hearing to be held on August 10th, advancing claims and planning to mine for repayment.
Celsius demands 60,000 ETH! Sues StakeHound for maliciously withholding collateral tokens.
Celsius in trouble! Settles with US FTC for $4.7 billion, former CEO accused of fraud and misappropriation of customer assets.