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Celsius Network Says $70 Million Cash Exemption Will Boost Its Presence During the Year

Additional cash from loan repayment, previously thought to be in stable currencies, means a much-needed increase for a cash-strapped lender.

Celsius, the crypto lender, which is in bankruptcy proceedings, said a newly found $70 million cash block would likely help it continue operating until the end of 2022.

According to a document provided by Kirkland & Ellis on Thursday, the law firm Celsius hired to help it restructure, Celsius “expects approximately $70 million in proceeds from repayment of US dollar denominated loans.

During a hearing in the U.S. Bankruptcy Court for the Southern District of New York on Thursday, a lawyer for Kirkland and Ellis said the loans were wrongly believed to be in stable currencies tied to dollars, which the lender was unable to use to finance its operations.

Additional funds mean a much-needed increase in rare liquidity at ° C and will expand its runway to pay for its business and restructure as it seeks a more durable solution to the liquidity crisis problem. The company’s costs far exceed its revenue from the unprofitable bitcoin mining process.

Celsius expects to receive the majority of the payment by October 7. Projections show that its available cash balance will be $42 million by the end of November. By extrapolating the weekly net cash flow, the cash block will continue barely until the end of this year.

The company initially predicted – without calculating loan payments – that it would run out of cash by October. It subsequently amended its forecast to say that it would likely remain until the end of the year, citing loans worth $61 million. The document containing the latest cash flow forecast reported a slightly larger figure of $70 million.

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