Celsius announced that it has started to retrieve and rebalance its assets, including the release of its existing Ethereum collateral, to ensure sufficient liquidity for asset allocation. According to the on-chain analyst Yujin Monitoring, Celsius’ collateral address holds 556,906 Ether, valued at approximately $1.24 billion.
In the previous article, Celsius transformed into a Bitcoin mining company to repay its debt, with a court approving the launch of the mining company with an initial capital of £225 million.
Celsius, the bankrupt cryptocurrency lending platform, is currently undergoing its restructuring plan and obtained court approval on the 29th of 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 the release of its existing Ethereum collateral, to ensure sufficient liquidity for asset allocation. These collateralized ETH provides significant staking rewards income, helping offset some of the costs incurred during the restructuring process.
Celsius emphasized that eligible creditors will receive “physical” distributions of BTC and ETH according to the approved plan.
How much Ether will be released from collateral?
Currently, Celsius has not publicly disclosed the amount of Ether it holds. However, according to information from the DeBank platform in a previous post by the on-chain analyst Lookonchain, Celsius’ collateral address displayed approximately 206,300 Ether, valued at approximately $460 million. According to today’s statement, 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 cause selling pressure on the market, but it is possible that creditors may sell the distributed assets upon receipt.
Source: DeBank
Update: According to the on-chain analyst Yujin Monitoring, Celsius currently has 556,906 Ether (valued at approximately $1.24 billion) still in a collateralized state. He stated that Celsius continued to transfer 10,000 Ether (valued at approximately $22.4 million) to the exchange Coinbase nine hours ago. Since November 13, Celsius has redeemed a total of 185,560 Ether (valued at approximately $415 million) through two Ethereum collateral addresses and transferred them to exchanges such as Coinbase, FalconX, and OKX through addresses starting with 0x413.
How long does it take to release collateral?
Although Ethereum now allows users to withdraw their collateralized Ether at any time, this process is not instantaneous. For entities like Celsius that directly engage in node staking (solo-staking), the time required to cancel collateral will depend on the amount of Ether they have staked and the number of validators awaiting withdrawal on 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 Ether collateral in the next few days, they may need to wait at least 5-6 days to distribute these ETH to creditors.
Source: Wen Merge
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