U.S. court approves Celsius' $225 million capitalization of new Bitcoin mining public company

The U.S. Bankruptcy Court for the Southern District of New York has approved Celsius and its associated debtors to implement the "MiningCo Transaction" as part of Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Code. This involves the formation of a public company focused on Bitcoin mining, including the capitalization of the new entity (NewCo) with $225 million in fiat currency and the transfer of certain mining assets to NewCo, excluding the Core Rhodium, Mawson and Luxor assets.

In addition, the court approved modifications to the management agreement, setting the initial term at four years with specific conditions for extension or early termination. It is worth noting that if NewCo’s mining capacity does not reach the specified 23EH/s Exahash target within the first three years, NewCo has the right to terminate the agreement without paying an early termination fee, provided a six-month transition period is given.