Bankrupt crypto lender Celsius seeks funding amid cash crunch

Bankrupt crypto firm Celsius Network will run out of cash by October and is looking for financing, including a so-called debtor-in-possession loan, Joshua Sussberg, the firm’s lawyer, said at a court hearing on August 16.

TO READ From Ukraine to Crypto: The Rocky Journey of Celsius CEO Alex Mashinsky

The company expects its cash balance to decline from more than $129 million in August to more than $37 million in October, according to a recent court filing.

“We’re looking at what’s the best way to finance this business. Is it a DIP loan or something else?” Sussberg said. The company’s creditors’ committee is looking at its workforce and expenses as part of an effort to conserve cash, he added.

TO READ Crypto company Celsius is recovering from bankruptcy: Here’s what you need to know

Celsius filed for bankruptcy last month after freezing customer deposits and assets amid a collapse in the value of cryptocurrencies.

This article was first published by MarketWatch, a title of the Dow Jones Group


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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!