Celsius to Curtail Scope of New Company to Mining Assets
Celsius Network, the crypto company that won court approval this month to end its yearlong bankruptcy, said it plans to reduce the scope of its surviving business following discussions with the Securities and Exchange Commission, WSJ Pro Bankruptcy reported. The revised restructuring plan will create a new company centered on Celsius’s bitcoin-mining business, the company said in a filing on Monday. Celsius said it made the changes after consulting with the securities regulator and is now waiting on SEC approval before the new company can execute on its plan. The earlier plan approved in a New York bankruptcy court would have resulted in a new company built around Celsius’s bitcoin-mining business, staking activities and monetizing of illiquid assets. Reducing the scale of operations means customer fees will be lower than those under the plan originally struck with Fahrenheit, a group of investors led by TechCrunch founder Michael Arrington which in May won the right to manage the new company. Customers would get back more of the liquid cryptocurrency that is held on the platform, the company said. Celsius also said it has started the process of gaining approval to list the shares of the new company.
