The Bankruptcy Court approved Celsius Network’s plans to sell the first cryptocurrency mined to finance operating expenses. The Block writes about it.

The crypto-lending platform will use the funds received to pay for the services of critical suppliers, taxes and fees, utilities, insurance premiums, and legal fees.

During the previous hearing, the committee of creditors succeeded in blocking the sale of mined bitcoins.

Celsius’ revised draft petition eased concerns that the proceeds would be used for trading or lending for profit. The judge acknowledged that the firm may not achieve positive cash flow in bitcoin mining and this will have negative consequences.

According to the documents, Celsius Mining is currently generating an average of 14.2 BTC per day.

In early July, the court allowed the company to spend more than $5 million to complete the construction of a mining facility in Texas. According to representatives of the platform, this may take about two months.

Representatives of the lenders pointed to the lack of transparency regarding the specifics of the costs of the mining business and expressed their readiness to apply for the appointment of an expert group to clarify this and other issues.

The creditors had previously said they intended to get the court to apply the 2004 Rule as part of a “large-scale investigation.” It involves the testimony of interested parties and the presentation of documents in a process similar to what happens in civil proceedings.

The next meeting will take place on September 1st. The creditors’ committee will agree on the position on 19 August.

On July 13, Celsius filed for Chapter 11 bankruptcy in a New York court. The company said its liabilities exceeded its balance sheet assets by almost $1.2 billion.

On July 19, the company presented a business reorganization plan. It involves the direction of the profit of a subsidiary mining company to compensate for losses to users and payments to creditors. Before this, Celsius Mining filed an IPO with the SEC.

According to the latest estimate, the “hole” in the Celsius Network balance sheet was $2.85 billion. From August to October, the platform will lose $137 million due to investments in the mining business and restructuring expenses, having completely exhausted its cash reserve.

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