Celsius announced that it has started to retrieve and rebalance its assets, including releasing its current Ethereum collateral, to ensure sufficient liquidity for asset distribution. According to on-chain analyst Yujin, Celsius’ collateral address holds 556,906 ETH, valued at approximately $1.24 billion.
Following its approval by the court last week to transform into a new publicly listed Bitcoin mining company called “Mining NewCo” with an initial capital of $225 million, bankrupt cryptocurrency lending platform Celsius Network is currently undergoing its restructuring plan.
Today, Celsius announced on X that it has started to retrieve and rebalance its assets, including releasing its existing Ethereum collateral, in order to ensure sufficient liquidity for asset distribution. These collateralized ETH provide significant staking reward income, helping offset some of the costs incurred during the restructuring process.
Celsius emphasized that eligible creditors will receive “physical” distributions of BTC and ETH according to the approved plan.
How much Ethereum collateral will be released?
Currently, Celsius has not publicly disclosed the amount of Ethereum it holds. However, according to information from the DeBank platform shared by on-chain analyst Lookonchain, Celsius’ collateral address displays approximately 206,300 ETH, valued at around $460 million.
According to today’s statement, these ETH will be released from collateral in the coming days to ensure timely distribution to creditors. As this is a physical distribution, it will not directly cause selling pressure on the market, but it is not ruled out that creditors may sell the allocated assets after receiving them.
Source: DeBank
Update: According to on-chain analyst Yujin, Celsius currently still has 556,906 ETH (valued at approximately $1.24 billion) in a collateralized state. He stated that 10,000 ETH (valued at approximately $22.4 million) was transferred to the Coinbase exchange by Celsius 9 hours ago. Furthermore, since November 13th, Celsius has redeemed a total of 185,560 ETH (valued at approximately $415 million) through two Ethereum collateral addresses, and transferred them to exchanges such as Coinbase, FalconX, and OKX via addresses starting with 0x413.
How long does it take to release collateral?
Although Ethereum now allows users to withdraw collateralized ETH at any time, this process is not instantaneous. For entities like Celsius that directly stake nodes (solo-staking), the time required to cancel collateralization depends on the amount of ETH they stake and the number of validators waiting to withdraw on the entire network.
Currently, according to data from the wen merge platform, the time required for validator node withdrawal is approximately 5 to 6 days. Therefore, if Celsius intends to release all its ETH collateral within the next few days, they may actually have to wait at least 5-6 days to distribute these ETH to creditors.
Source: wen merge
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