A US Bankruptcy Judge granted Celsius Network permission to mine and sell bitcoin during the bankruptcy proceedings to obtain an alternative source of income.
Celsius previously stated that bitcoin mining could be a key factor in the successful completion of the company’s restructuring processes, and it is ready to invest $5.2 million in mining equipment. The court approved Celsius’ intention to seek additional sources of income, but expressed concern that mining will not bring instant profit, as Celsius will initially be forced to invest heavily in the purchase of equipment.
Celsius attorney Ross Kwasteniet of Kirkland & Ellis agreed with the judge and acknowledged that the initial stage of mining would be unprofitable. However, Kvasteniet drew the court’s attention to the fact that Celsius’ financial forecast shows a profit from the sale after investing resources in the purchase of mining equipment and the start of mining crypto assets.
The U.S. Department of Justice and the Texas Securities Board (SSB) opposed Celsius’s spending on organizing crypto asset mining operations. Regulators’ objections were lifted after Celsius clarified that it would only sell the mined cryptocurrency for cash and not use it as collateral or lending. At the same time, the court prohibited Celsius from selling its or any other shares and debentures without special judicial permission.
Recall that this month the court granted the request of Ripple Labs to include the company in the lawsuit as a potential bidder to buy Celsius Network assets.