Due to a $1.2 billion debt gap, lending platform Celsius Network announced bankruptcy on July 13, 2022. After a series of lawsuits and asset liquidation, the company announced on Wednesday that it will begin distributing $3 billion worth of remaining assets to its creditors.
Interim CEO Chris Ferraro stated in a statement:
As part of Celsius’ restructuring plan, a portion of this $3 billion will be used to establish a new Bitcoin mining company called Ionic Digital, owned by the creditors. Celsius’ creditors will have ownership of the mining company through common stock, which is expected to go public after obtaining necessary approvals. Hut 8, a mining company headquartered in Miami, will oversee the mining operations of Ionic Digital under a four-year management agreement.
