Celsius Mining recently entered into a sales agreement with Touzi Capital to sell 2,687 Bitcoin mining rigs for $1.34 million. The mining rigs, known as “MicroBT ASIC M30S,” are located in Houston, Texas, and have a hashrate ranging between 84TH/s to 92TH/s. The decision to sell to Touzi Capital was made after discussions with brokers and market participants, deeming this offer as the best option. The proceeds from the sale will be utilized for general and corporate expenses, pending approval from the De Minimis asset sale order.
However, a creditor of Celsius, Víctor Ubierna de las Heras, raised concerns regarding the sale of the mining rigs. He objected to the sale due to the lack of clarity on how the proceeds would be used by the debtors. Heras argued that the intended use of the proceeds should be clearly defined before moving forward with the sale. He also questioned whether selling the mining rigs, especially at a 73% discount, was in the best interest of Celsius Mining’s estate, given that the company was previously reported as cash-flow positive.
The creditor’s objection raises valid points regarding the transparency and rationale behind the sale of the mining rigs. He highlighted the discrepancy between the company’s claim of being cash-flow positive and its decision to sell assets at a significant discount. Heras emphasized the importance of ensuring that the sale is conducted in the best interest of Celsius Mining’s estate and questioned the impact of selling these assets on the company’s restructuring plans.
The sale of the mining rigs to Touzi Capital is still subject to the De Minimis asset sale order, indicating that the final approval is pending. The decision to sell the rigs for general and corporate expenses raises questions about the company’s financial stability and long-term sustainability. The creditor’s objection sheds light on the potential risks and implications of this sale for Celsius Mining and its stakeholders.
In conclusion, Celsius Mining’s sale of 2,687 Bitcoin mining rigs to Touzi Capital for $1.34 million has sparked objections from a creditor, citing concerns about the clarity and rationale behind the sale. The creditor’s objections highlight the need for transparency and accountability in the decision-making process, especially when it comes to the use of proceeds from asset sales. The outcome of this dispute will impact the future of Celsius Mining and its restructuring plans, underscoring the importance of ensuring that all parties involved are aligned on the best course of action for the company’s estate.
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