Celsius Bankruptcy Details $1.2 Billion Hole In Balance Sheet
Celsius files for Chapter 11 bankruptcy. Balance sheet shows a gap of $1.2 billion and reckless behavior with customer deposits.
Celsius Bankruptcy Shows Reckless Behavior
Read previous Celsius issues and updates here:
Today’s issue will shed some light on the details of the Celsius situation following the filing of Chapter 11 Bankruptcy protection yesterday afternoon. CEO Alex Mashinsky followed up the filing with an official statement released today.
In the statement, among many other interesting notes, it was revealed that the firm has a $1.19 billion hole in its balance sheet officially.
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Unofficially, the numbers are far worse, with the most obvious being the $600 million worth of CEL token the company claims as an asset.
Egregiously, the current market cap of the CEL token is $170 million, with the highest figure it reached over the most recent week being approximately $240 million. This isn't even accounting for the liquidity and slippage dynamics. The statement also claimed that in March of 2022, the Celsius balance sheet went negative in terms of customer liabilities (deposits) relative to the firm’s assets.
The firm also engaged in collateralized lending with customer deposits to invest in a mining operation through a $750 million credit line.
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