Celsius announced that it has begun retrieving and rebalancing its assets, including unlocking the current Ethereum collateral, to ensure sufficient liquidity for asset distribution. According to the DeBank platform, Celsius’ collateral address holds approximately 206,300 ETH, valued at around $460 million.
Bankrupt cryptocurrency lending platform Celsius Network is currently undergoing its restructuring plan and obtained court approval on July 29th to transform into a new publicly listed Bitcoin mining company called “Mining NewCo.” The new company has an initial capital of $225 million with the aim of repaying debts to creditors.
Today, Celsius announced on X that it has started retrieving and rebalancing its assets, including unlocking the current Ethereum collateral, 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 ETH will be unlocked?
Celsius has not disclosed the exact amount of ETH it holds, but according to information from the previous post by the on-chain analysis account lookonchain, Celsius’ collateral address on the DeBank platform shows approximately 206,300 ETH, valued at around $460 million.
According to today’s statement, these ETH will be unlocked in the coming days to ensure timely distribution to creditors. As this is a physical distribution, it will not directly create selling pressure in the market, but it is possible that creditors may sell the distributed assets upon receiving them.
Source: DeBank
How long does it take to unlock the collateral?
Although Ethereum now allows users to withdraw their collateralized ETH at any time, the process is not immediate. For entities like Celsius that directly stake on the Ethereum network (solo-staking), the time required to cancel the collateral depends on the amount of ETH they have staked and the number of validators awaiting withdrawal on the entire network.
Currently, according to data from the wen merge platform, the time required for validator withdrawal is approximately 5 to 6 days. Therefore, if Celsius intends to unlock all of its ETH collateral in the next few days, they may have to wait at least 5-6 days before being able to distribute these ETH to creditors.
Source: wen merge
Related Reports:
– Celsius’ restructuring hearing to be held on August 10th, advancing claims and planning to mine and repay debts.
– Celsius demands 60,000 ETH, files a lawsuit against StakeHound for maliciously withholding collateral tokens.
– Celsius in trouble! Settles with the US FTC for $4.7 billion, former CEO accused of fraud and misappropriation of customer assets.