This information was confirmed via a source close to or within the company, who will remain unnamed.
Most people were unaware the recently bankrupt crypto lender Celsius was also mining Bitcoin at a fairly large scale- running more than 22,000 ASIC mining devices.
We say 'more than 22,000' because towards the end of 2021 Celsius said the were expanding their mining operation, and at that point they said they already had 22,000 rigs.
We never heard how many more were added, assuming they followed through with their plans to expand at the time.
Then Market PANIC Triggered a Sell-Off of their Miners - at a HUGE Discount...
Through online auction sites Celsius sold at the mining rigs HALF PRICE of their current value, which highlights just how desperate the company had become.
It appears they used primarily Antminer S19 Pro models, which you can buy from the manufacture Bitmain at today at $5,940 - but they sold each unit between $2,400 and $3,000.
Sticking with the low estimate of 22,000 mining rigs, it appears Celsius sold their mining rigs at a total discount of over $63 Million.
Taking a $63 Million Loss, to Avoid a $4 BILLION One...
While it sounds insane now, at the time the threat of liquidation was becoming more likely every day - their assets were over leveraged, and as Bitcoin's price dropped they were coming closer to losing everything.Raising these funds fast and paying down some of their debt helped them avoid losing all $4.7 billion!
Next time I think I'm having a stressful day at work, I'll think of the decisions the Celsius guys have had to make over these last few weeks.
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Author: Mark Pippen
London News Desk
Breaking Crypto News
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