According to CoinDesk, crypto lender Celsius will transition to a new company focusing solely on mining bitcoin, following feedback from the U.S. Securities and Exchange Commission (SEC) on certain aspects of its reorganization plan. Previously, the plan included a focus on staking as well. The announcement came after the SEC requested more information about the assets of the former crypto lender. A judge had earlier handed the implementation of Celsius's reorganization to Fahrenheit Holdings, a group that includes Arrington Capital and crypto miner U.S. Bitcoin Corp. Fahrenheit won a bid to acquire Celsius in May 2023.
The new company, currently referred to as NewCo in filings, was initially planned to focus on mining and staking. However, the SEC's feedback has led to Celsius now intending to apply to register the shares in a new publicly traded Bitcoin mining company that will be owned by Celsius customers. The core business of the proposed new company will be Bitcoin mining. Due to regulatory reasons, certain assets that were to be transferred to Fahrenheit Holdings will now be retained by Celsius's estates and administered and monetized by the Plan Administrator and/or Litigation Administrator for the benefit of creditors. The debtors still anticipate that distributions to creditors will commence in January 2024.
