Web 3.0 business opportunities illustrated - Celsius scraps Fahrenheit consortium, gets court approval for Bitcoin mining company.
Celsius scraps Fahrenheit consortium, gets court approval for Bitcoin mining company

Celsius Network’s Bankruptcy Exit Plan

Celsius Network has been granted a second exit route from bankruptcy, which involves the creation of a public company solely dedicated to Bitcoin mining, rather than the prior plan of a company with multiple lines of business managed by the Fahrenheit consortium.

On December 27th, Judge Martin Glenn signed off on the new option, which had been approved by Celsius’ creditors. The original plan had called for the formation of a new company, named NewCo, which would expand Celsius’ existing mining operations and other business activities. This plan was backed by the Fahrenheit consortium, which included Proof Group, Arrington Capital, and Hut 8.

However, the United States Securities and Exchange Commission (SEC) refused to grant the necessary relief for the initial plan, leading to the switch to the second path. According to the document, “the Debtors, with the Committee’s support, have switched to the second path approved by creditors: the Orderly Wind Down.” This suggests that web 3.0 business ideas, web 3.0 marketing strategy, web 3.0 business opportunities, web 3.0 business model, web 3.0 for small business, web 3.0 business, web 3.0 development company, web 3.0 business models, is metaverse part of web 3.0, and how will web 3.0 impact business, will all be affected by this decision.

Web 3.0 Business and Celsius Bankruptcy

Under the new plan, creditors of Celsius will receive part of their recovery through shares of the upcoming Bitcoin mining company. In addition, the plan unlocks $225 million in crypto assets initially planned to fund new web 3.0 business ideas, web 3.0 marketing strategy, and web 3.0 business opportunities that the SEC rejected. According to the previously approved plan, approximately $2 billion in Bitcoin (BTC) and Ether (ETH) will also be redistributed to Celsius creditors.

Some creditors and the U.S. Department of Justice’s bankruptcy watchdog claimed that Celsius should have to put the proposal to a new vote, Reuters reported. Judge Gleen, however, determined that the new restructuring strategy would not adversely affect creditors.

Celsius was one of several crypto lenders to collapse in 2022, filing for bankruptcy in July. Its former CEO, Alex Mashinsky, was arrested in July 2023 on charges of securities fraud, commodities fraud and wire fraud. This bankruptcy case has brought up questions about the impact of web 3.0 on small business, web 3.0 business models, and whether the metaverse is part of web 3.0.

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