Celsius Mining to sell 2687 BTC mining rigs for $1.34M Celsius Mining to sell 2687 BTC mining rigs for $1.34M
A Celsius creditor Víctor Ubierna de las Heras has objected to the sale and questioned whether it is in the best interest of the estate.
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Updated: Jan. 13, 2023 at 11:23 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Celsius Mining entered into a Jan. 7 sales agreement to sell 2,687 Bitcoin mining rigs for $1.34 million to Touzi Capital , according to a Jan. 11 court filing.
The mining rigs are “MicroBT ASIC M30S” located in Houston, Texas, with a hashrate ranginf between 84TH/s to 92TH/s.
Celsius Mining said it held discussions with several brokers and market participants and determined that Touzi Capital’s offer was the best.
The mining firm said the proceeds from the rig’s sales would be used for general and corporate expenses.
Meanwhile, the sales are still subject to the De Minimis asset sale order.
Previously, Bitcoin (BTC) miner Core Scientific got a Jan. 4 court approval to shut down Celsius Mining’s 37,000 mining machines.
Creditor objects to sales
Meanwhile, a Celsius creditor, Víctor Ubierna de las Heras, objected to the sale of mining rigs on the basis that the debtors did not specify how they will use the proceeds from the sales.
“They say that the intended use of the sale proceeds is ‘General and corporate expenses.’ That is like saying nothing. General and corporate expenses can mean everything and nothing at the same time.”
De las Heras added that the intended use of the proceeds should be clearly defined before the sale can proceed.
He also questioned whether the sale was in the estate’s best interest considering the debtor previously said Celsius Mining was cash-flow positive and generating income.
Heras said:
“If Celsius Mining is cash-flow positive, how can selling these M30S be in the best interest of the estate? Additionally, if Celsius Mining is going to play a big role in any reorg, how can selling these new M30S be in the best interest of the estate?”
The creditor highlighted that Celsius also wanted to sell the mining machines at a 73% discount, which is inconsistent with the assets’ fair market value.
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Posted In: Bankruptcy, Mining
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.
Core Scientific
Core Scientific is a leader in infrastructure and software solutions for Artificial Intelligence and Blockchain.