The court filing said, “The Debtors are authorized, but not directed, in their reasonable business judgement and with the consent of the Committee, to sell the Bitmain Coupons.”
Judge Martin Glenn has authorized Celsius to sell $7.4M worth of coupons for Bitmain, a crypto mining firm. The coupons, which cost Celsius $37M, provide a 10-30% discount on Bitmain’s mining rigs.
On February 9, Celsius submitted a request to the bankruptcy court in New York to allow the firm to sell the Bitmain coupons and credits under its ownership.
Christopher Ferraro, the Interim CEO of Celsius, claimed that the coupons will expire in a few months. According to him, the coupons will become worthless to Celsius after their expiration date. He added,
“While the estimated discount is significant, it would be a mistake to hold onto the Bitmain Coupons hoping to realize more value in a sale at a later date."
Therefore, Celsius seeks to sell the Bitmain coupons at a discounted price of $7.4M instead of charging the actual price of $37M.
As per the judge’s order, Celsius may sell the Bitmain coupons to third-party firms. However, the bankrupt lender will need to receive the approval of its Committee of Unsecured Creditors (UCC) before it can sell the coupons.
It is worth noting that the ruling did not cover Celsius’s request to sell Bitmain credits.
Celsius expects the sale of the credits to yield another $7M. Unlike the mining coupons, the credits can be redeemed for 100% of their value by December 2024.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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