Celsius Network has received court approval to convert its altcoins into Bitcoin (BTC) and Ethereum (ETH), the two dominant digital currencies. The conversion will start on July 1, as per a court filing on June 30.
Bankruptcy Judge Martin Glenn of the Southern District of New York approved the move, following discussions between Celsius and the Securities and Exchange Commission (SEC). The decision is seen as an attempt to stabilize the company’s financial standing.
Furthermore, the court has instructed the bankrupt firm to submit a monthly “Budget and Coin Report” that details the number of altcoins converted into BTC and ETH. This is likely to ensure transparency and accountability in the company’s operations during this crucial phase.
Celsius holds a substantial altcoin portfolio valued at around $187.04 million, featuring assets like BNB, Celsius, MATIC, FTT, and AVAX, as per Arkham Intelligence data.
Additionally, the lender holds assets worth $409.03 million in BTC and ETH. The court’s decision, therefore, not only alters the composition of Celsius’ cryptocurrency holdings but also marks a substantial shift in its financial strategy.
As Celsius Network moves forward with this conversion, the wider cryptocurrency industry will undoubtedly be watching to see how this process affects the company’s recovery and the broader market dynamics.
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