Claim BonusJust-In: Cash-strapped Celsius Secures Court’s Approval To Mine Bitcoin (BTC)
Celsius creditors are having a tough time especially after the company filed for Chapter 11 bankruptcy last month. On Monday, Celsius network forecasted that it would see a staggering shortfall of funds by October due to unexplained capital expenditure.
After the company’s customers impacted by the alleged fraud sought Court’s help to get back their money, a New York judge Martin Glenn has allowed Celsius to mine Bitcoin (BTC) and sell its operations to restore financial stability.
Now, with the court’s approval, Celsius can mine and sell Bitcoin during its bankruptcy.
The cash-strapped company is believed to have over 100,000 creditors and 1.7 million customers. As per Celsius’ bankruptcy filing, the crypto lender owes its users approximately $4.7 billion.
Noticeably, chief bankruptcy judge Martin Glenn, Southern District of New York has expressed concerns with respect to the immediate profitability of BTC mining in view of the the high upfront investments required to set up mining infrastructure.
The court has forbidden Celsius from selling equity/debt investments in other crypto businesses asking it for a prior disclosure of information of its assets.
As per sources, the recent approval, is only limited to mining and selling the mined Bitcoin.
Celsius believes investment in mining will help it generate profits
The company believes that investment in mining will help it generate profits. The US Department of Justice & the Texas State Securities Board, which earlier disagreed with Celsius’ desire to explore BTC mining have now withdrawn their objection after the crypto lender clarified that it would just sell the Bitcoin that it mines to generate cash.
Final hearing of the case to take place on September 1
In the court hearing, Celsius stated that BTC prices have gone up by 25% since the petition was filed. The final hearing of the case is expected to take place on September 1st.
Meanwhile, Celsius (CEL) traded 10.54% lower at $2.42 with a 24-hour trading volume of $39,666,294.80 USD.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Breaking: Federal Reserve Holds Rates Steady After FOMC Meeting as Expected
- Senators Propose Amendments To Crypto Market Structure Bill Ahead Of Tomorrow’s Markup
- Ethereum Gains Wall Street Adoption as $6T Fidelity Prepares FIDD Stablecoin Launch
- Bitcoin Faces Fresh Geopolitical Risk as Trump Threatens ‘Far Worse’ Military Action Against Iran
- FOMC Meeting Today: What To Expect as Markets Price In No Rate Cut
- How High Can Hyperliquid Price Go in Feb 2026?
- Top Meme Coins Price Prediction: Dogecoin, Shiba Inu, Pepe, and Pump. Fun as Crypto Market Recovers.
- Solana Price Targets $200 as $152B WisdomTree Joins the Ecosystem
- XRP Price Prediction After Ripple Treasury launch
- Shiba Inu Price Outlook As SHIB Burn Rate Explodes 2800% in 24 Hours
- Pi Network Price Prediction as 134M Token Unlock in Jan 2026 Could Mark a New All-Time Low
