In the context: The bankruptcy of The Celsius Network may not only affect its customers, who may never see their money again. The cryptocurrency lending giant owns over 80,000 mining rigs and may now be forced to sell some of those assets to pay off creditors. As a result, prices in the used car market will drop even more.
collapse TerraUSD led to the creation of decentralized finance (DeFi) platform Celsius in May withdrawal freeze, swaps and transfers between customer accounts due to “extreme market conditions”. Company filed for bankruptcy last week, making its users worry about when they will get their money back and if they will get their money back.
bloomberg reports that a mining subsidiary of Celsius has also filed for protection. According to Celsius Mining, it owns 80,850 rigs, 43,632 of which are in operation, and plans to have around 120,000 rigs up and running and generating more than 10,000 coins by the end of this year.
Celsius Mining is expected to sell some of its ASIC mining hardware. The problem, however, is that the prices of these machines have fallen by 50% to a two-year low as the crypto winter continues.
CoinDesk writes that Celsius Mining had already auctioned off at least 7,000 newly acquired mining rigs in June at a below-market price. This trend is expected to continue with the liquidation of more mining companies.
Celsius emphasizes that filing for Chapter 11 bankruptcy will allow you to reorganize your financial obligations while operations continue. The company is expected to continue at least part of its mining business in order to pay off some of its debts. Celsius has 100,000 creditors, including an $81 million unsecured lawsuit from the Cayman Islands-based Pharos fund and a $12 million unsecured loan to Alameda Research.
While Celsius Mining is using ASIC machines, we are also seeing prices drop on used PC hardware as more graphics cards were once used by amateur miners. land at auction.
Credit: www.techspot.com /