Celsius (CEL) is down by 21.38 per cent and is trading at $2.53 as of now, its trading volume having fallen by 41.90 per cent since early morning. It was trading at $4.4 at 8:49 am on August 17, 2022.
Kirkland & Ellis, a law firm hired by Celsius, has filed a report in court, which includes financial projections that Celsius will run out of cash by October this year.
According to the report filed by Celsius’ lawyers at the US Bankruptcy Court for the Southern District of New York, the value of the coins held by the company is $3.8 billion, and it owes $6.6 billion worth of assets, which means that the company’s current debt is $2.8 billion.
This deficit figure is different from the Chapter 11 bankruptcy which was filed last month, stating that the company had a $1.2 billion hole in its balance sheet – liabilities exceeding assets – after paying off its debt to decentralised financing protocols.
Celsius spiralled into bankruptcy after the crash of TeraLUNA and fall of the Three Arrow Capital, a crypto Hedge Fund, and Celsius halted customer withdrawals in July citing “extreme market conditions”.
According to the report filed by Kirkland & Ellis, from the entire 100,669 Bitcoin (BTC) deposited by investors, the firm has lost roughly 62,853 BTC and presently possesses around 37,926 BTC Wrapped Bitcoin (WBTC), representing 64 per cent of the company’s BTC debt. Celsius also has a USD Coin (USDC) holdings deficit. The lender owes $944.84 million in USDC tokens, despite possessing only $278.75 million in USDC on July 29th, according to the paper.
Celsius Will Run Out Of Money In October
The filling showed that the company holds enough cash to run for three months only. The company’s operational expenses and other costs, including restructuring initiatives, are estimated to total $137 million over the following three months, and the balance would become negative in October. By then, the company expects to have negative $33.9 million in liquidity.
Celsius disclosed it owes $2.5 billion in Bitcoin (104,962 BTC), while the firm holds $348 million in Bitcoin (14,578 BTC) and $557 million in a type of Bitcoin derivative – Wrapped Bitcoin (23,348 WBTC).
They own $713 million worth of Ethereum, while they owe $1.7 billion worth of Ethereum to their investors, while the USDC holding and investment gap is worth $666 million.
The report further said that they still hold $379 million worth of surplus Celsius (CEL) tokens, as they owe 279 million of the tokens to client, and have 658 million CEL tokens still in their holdings.