Although Celsius announced last July that it will focus part of its activity in cryptocurrency mining as part of its restructuring, we learn that Celsius Mining, its mining branch, will sell 2,700 of its machines. The investment company Touzi Capital signed the sales contract, which exceeds 1.3 million dollars.
Celsius sells bitcoin mining machines
The prospect of a way out for Celsius like shrinking. And for good reason, the mining branch of the bankrupt company they will sell about 2,700 of their Bitcoin (BTC) mining machines.that shows over $1.3 million.
Celsius’ announcement last July to focus its restructuring towards BTC mining as part of its US Chapter 11 protection was a surprise decision. However, the current environment is so unfavorable for cryptocurrency minersespecially because of the cost of energy, Celsius has probably been losing more money so far than it has earned with this activity.
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The machines sold by Celsius are all M30S models, with a hashrate varying from 84 to 92 TH/s and at a price varying from 476.28 to 521.64 dollars depending on their performance.
Excerpt from the document filed by Celsius
According to a January 11 document filed by Celsius with the US Bankruptcy Court for the Southern District of New York, the company Touzi Capital will acquire these mining machines. Touzi is a company that specializes in various fields, including real estate, but also invests in Bitcoin mining. He already owns several mining farms in the United States.
Still according to the document, it was Touzi who managed to make the most substantial offer to acquire this equipment. The company was chosen after Celsius spoke to “several brokers and market participants”.
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Celsius financial position
According to the document filed by Celsius, the proceeds of this sale will be intended for “general and business expenses”. An explanation with rather vague contours, which also earned legal opposition from Víctor Ubierna de las Heras, a creditor of Celsius, who appealed to the relevant bankruptcy court :
“They say the intended use of proceeds from the sale is for ‘general and business expenses.’ It’s like saying nothing.Overhead and business expenses can mean everything and nothing at the same time. […] Will Celsius use the proceeds from the sale to repay its creditors? Will Celsius pay his rent with this amount? You can’t tell by reading the contents of the document. »
It’s a double punishment for Celsius, which was recently forced to shut down 37,000 of its mining machines leased from Core Scientific, the company is no longer able to meet its operating costs.
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Source: Court document
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