Celsius, a crypto lender that filed for bankruptcy in July of last year, is hoping to raise more than $14 million by selling discount vouchers for mining company Bitmain before they expire. The deal includes coupons that offer buyers of mining rigs a 10%-30% discount on future purchases from Bitmain, as well as the credits that accrue when purchasers pay by instalment.
Celsius is rushing to agree a wind-up plan that could include setting up a recovery corporation that offers creditors liquid crypto. The voucher sale proposal follows a similar deal by bankrupt bitcoin miner Core Scientific, which received approval from a judge in the Southern District of Texas on Feb. 1 to sell Bitmain coupons in an attempt to raise $1 million.
Celsius’ vouchers have a combined face value of over $48 million. The company reckons it can sell the coupons for $7.4 million and credits for $7 million on secondary markets. The company said it was in discussions with six potential buyers for the coupons, sourced via mining broker Bitooda, Bitmain and Celsius’ own contacts.
The proposed sale of the vouchers has been met with opposition from creditors and the US government, who argue that the sale of the vouchers would not be in the best interests of the creditors. A hearing in the Celsius case is due Feb. 15 in the Southern District of New York.
The sale of the vouchers could be a lifeline for Celsius, allowing them to restore funds to creditors and potentially avoid liquidation. However, the outcome of the hearing will determine whether the sale of the vouchers will be approved or not.