CEL rises as Celsius bankruptcy reveals billion gap in balance sheet

There is worrying news about Celsius (CEL), as the July 14 so-called Chapter 11 bankruptcy filing has resulted in a nearly $1.2 billion deficit for the crypto lender.

According to a new document filed with the U.S. According to the Bankruptcy Court of the Southern District of New York, Celsius has $4.3 billion in assets versus $5.5 billion in liabilities, for a $1.2 billion deficit.

The bulk of the company's liabilities consisted of customer deposits, which totaled $4.72 billion. On the assets side, the company held $1.75 billion in cryptocurrencies and $170 million in cash.

Specifically, Celsius' CEL token assets have been valued at $600 million, although at press time on July 15, the token has a total market cap of just $172 million and a fully diluted market cap of $500 million, according to CoinMarketCap would have.

Source: U.S. Bankruptcy Court of the Southern District of New York

As of 8:30 a.m., the CEL token is up just over 26% in the past 24 hours and has remained flat for the past 7 days. It's also up 6% in a month and down 87% in a year.

CEL 7-day price chart. Source: coingecko.com

Meanwhile, according to the filed document, the company's mining operation, Celsius Mining LLC, could "over time" generate enough assets to pay off some loans, as well as "generate bitcoin that will provide revenue for the company in the future ".

The document added that Celsius's mining arm owns 80,850 mining rigs, of which 43,632 are "operational".

"Mining is currently generating approximately 14.2 bitcoins per day for the past seven days," the filed document continues, and is forecast to generate 10,118 bitcoins in total for 2022.

It was previously reported that crypto exchange FTX backed out of a deal with Celsius after gaining access to its financial reports. According to a report by The Block, people familiar with the matter cited a "$2 billion hole" in Celsius' balance sheet as the reason FTX lost interest.

Since then, Celsius has repaid some debts, including $78.1 million worth of USD coin (USDC) to lending protocol Aave (AAVE).