Celsius planned to get $14 million for Bitmain vouchersManagement at bankrupt cryptocurrency lender Celsius Network planned to raise more than $14 million by selling discount vouchers to mining company Bitmain before expiration. According to the management team, this will partially offset the creditors' losses.
The proposed deal will include coupons that will offer buyers of mining equipment a 10-30% discount on the purchase of Bitmain's Antminer line from the manufacturer. In addition, consumers will have access to a special credit system and installment options.
The voucher offer follows a similar deal by bankrupt miner Core Scientific. The latter received approval from a judge in the Southern District of Texas (U.S.) to sell Bitmain coupons in an attempt to raise $1 million in early February 2023.
"Current market conditions and time to expiration offer debtors the greatest likelihood of maximizing the value of Bitmain coupons and Bitmain loans," the legal document filed on behalf of Celsius stated. "The market value of Bitmain coupons declines as they approach expiration until they depreciate."
The Celsius vouchers have a total face value of more than $48 million. According to a statement from acting CEO Christopher Ferraro, the firm expects to sell $7.4 million in coupons as well as realize $7 million in loans in the secondary market. Organization officials said they are in talks with six potential buyers, through broker Bitooda, and Bitmain management.
Celsius previously filed for bankruptcy and is now rushing to agree on a liquidation plan, which could include the creation of a new organization. This could be followed by the issuance of a new liquid cryptocurrency.
