Bankrupt Crypto Lending Firm Celsius Shifts Focus to Bitcoin Mining Amid SEC Feedback on Reorganization Plan

cryptonews.com:

Crypto lender Celsius has amended its reorganization plan, opting for a singular focus on bitcoin mining instead of the initially proposed combination of mining and staking.

In a court filing on Monday, Celsius signaled its departure from the earlier Plan that combined both staking and mining and planned to transition to a new company that focuses only on mining bitcoin.

This move follows feedback from the U.S. Securities and Exchange Commission (SEC) on specific aspects of the initial reorganization plan. The SEC’s request for additional information about the former crypto lender’s assets led to the revision of Celsius’s strategy.

Celsius said in the filing:

“Following confirmation, Celsius received feedback from the Securities and Exchange Commission (the “SEC”) on certain aspects of the Plan, which has resulted in Celsius now intending to begin the process of applying to register the shares in a new publicly traded Bitcoin mining company that will be owned by Celsius customers (the “Mining NewCo”).”

The company now plans to initiate the registration process for shares in a new publicly traded Bitcoin mining company named “Mining NewCo,” to be owned by Celsius customers.

Initially, the court-approved reorganization plan designated implementation responsibilities to Fahrenheit Holdings, a consortium including Arrington Capital and crypto miner U.S. Bitcoin Corp. Approved in May 2023, the Plan outlined the creation of a new company registered in Delaware, temporarily referred to as NewCo. The original intention was for NewCo to engage in both mining and staking activities.

The SEC’s feedback prompted Celsius to narrow its focus to bitcoin mining with Mining NewCo. The company anticipates commencing the registration process for