Celsius Lead Shareholder Recommends ‘Best Recovery Options’
Celsius’ lead shareholder BnkToTheFuture has revealed 3 recovery solutions to rescue troubled Celsius. BnkToTheFuture and its CEO Simon Dixon, who are both depositors and shareholders, come up with a “depositors first, shareholders next” plan to support the community.
“Proposal #1: A restructuring to relaunch Celsius and allow depositors to benefit from any recovery through financial engineering.
Proposal #2: A pool of the most influential whales in Bitcoin to co-invest with the community.
And, Proposal #3: An operational plan that allows a new entity and team to rebuild and make depositors whole. ”
Simon Dixon Recommends 3 Recovery Proposals to Celsius
Celsius approached BnkToTheFuture CEO Simon Dixon seeking opinions on recovery plans to avoid bankruptcy. Dixon recommended three proposals that benefit the depositors of Celsius. Two proposals focused on restructuring and rebuilding the firm, but it doesn’t guarantee full recovery and involves financial risks.
Another option is to recover the firm through fundraising from Bitcoin whales and the community. A similar recovery of Bitfinex was completed in 2016 by BnkToTheFuture that involved security tokens, debt, and equity, which gave investors a very high return.
BnkToTheFuture needs community support to successfully implement the proposals and has already discussed the terms with the Celsius board. Moreover, BnkToTheFuture can call a shareholder meeting as part of their statutory shareholder rights because they hold over 5% of Celsius shares.
Simon Dixon believes the company should evade bankruptcy in any way possible. Celsius has passed withdrawals, swaps, and transfers since June 13, locking customers from access. If Celsius files for bankruptcy, then users will lose all funds.
“We believe all attempts should be made to make depositors whole in order to maintain shareholder value.”
Meanwhile, Celsius in a blog post on July 1 announced that it is working on possible solutions to stabilize liquidity and operations soon. Celsius is taking steps to protect assets and explore options such as pursuing strategic transactions and restructuring liabilities.
FTX Reached Celsius for a Bailout
FTX was interested in baling out Celsius as it moved close to bankruptcy but refrained after seeing a poor balance sheet.
Advisors have recommended Celsius for a bankruptcy filing. However, executives want Celsius users to enable the “HODL” option in their accounts to show support.
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