Aug 16, 2022 Camille A. Hanard

Celsius is expected to run out of operational money by October 2022

The crypto lender Celsius is expected to face a negative cash flow of roughly $137 million in October, as bankruptcy proceedings continue, according to the new court filing from the law firm Kirkland and Ellis, hired by Celsius.  

Celsius filed a Voluntary Petitions for Chapter 11 bankruptcy protection last month, under a severe liquidity crisis that forced the company to halt withdrawals. Since then, the platform has been going through a restructuring process in an effort to find ways to pay creditors.

The new court filing which detailed the company’s spending for the period from August till October 2022, revealed that the company has bogged down in a financial crisis even deeper than previously reported. The filing showed a significant gap of $2.8 billion between the company’s assets and liabilities, compared to a $1.2 billion hole in the balance sheet as reported last month.      

Celsius still has about $130 million in cash balance as of August, but with all upcoming operational, capital, and restructuring expenditures, which are estimated to total $137 million for the next three months, the company’s liquidity is to drop to negative $33.9 by October 2022. 

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