Later on Monday, cryptocurrency lending platform Celsius announced in a court filing that the company will pivot to become a new entity focused on Bitcoin mining, shifting away from its earlier restructuring plan that also included a focus on staking.
This move comes after the U.S. SEC raised feedback on “certain aspects of the plan.” Several hours before Celsius announced this news on Monday, CoinDesk reported that the court-approved restructuring plan hit a snag as the SEC sought more information about the company's assets.
Earlier, a judge handed over the implementation of Celsius' restructuring to Fahrenheit Holdings, a group including Arrington Capital and crypto mining firm U.S. Bitcoin Corp. Fahrenheit won the bid for Celsius assets in May 2023. As per the plan, the company will register a new entity in Delaware, currently referred to as NewCo in the documents. According to the court-approved plan, the company will focus on mining and staking.
The filing states: “In the coming weeks, the Debtors intend to file a motion with the Bankruptcy Court seeking approval of modifications to the Plan to reflect the new transaction with Mining NewCo, which the Debtors do not anticipate will require vacating the Plan. The Debtors still anticipate beginning distributions to creditors in January 2024.” (CoinDesk)
Earlier today, reports indicated that Celsius' reboot plan faced opposition from the U.S. SEC. Currently, there are ongoing discussions, described as a “tug of war,” between the SEC, the Celsius Creditors' Committee, and Fahrenheit regarding information about the legacy assets held by Celsius.
Insiders suggest that the SEC is seeking more information before making a decision, wanting to see the condition of various parts of the company.