The Southern District of New York Bankruptcy Court has permitted Celsius Network to continue operating its Bitcoin (BTC) mining operation, citing concerns that the firm would run out of cash by October. In an attempt to restore financial stability to the troubled crypto lending company, Chief Bankruptcy Judge Martin Glenn approved the request. The firm can sell the BTC it mines as a result of the decision.
In mid-June, Celcius Network filed for chapter 11 bankruptcy. The firm submitted the filing for its mining unit as well. However, the firm sought to continue its daily operations by filing for motions. The move was meant to allow the firm to continue stabilizing its operations and completing a restructuring deal. Furthermore, Celsius Network’s mining firm planned to go public in March. Unfortunately, investors were unsure after the firm halted withdrawals, so their plans weren’t achieved.
The firms restructuring plans include central BTC mining operations. While the judge’s latest decision is a sign of relief for many investors and employees, it expresses reservations about the venture’s immediate profitability.
According to Celsius’ bankruptcy filings, the company has over 80,000 Bitcoin mining rigs. In addition, last year the company invested $500 million on North American mining initiatives. Additionally, the company’s mining unit filed to be listed with the SEC in March of this year.
The next hearing on Celsius Network is scheduled for September 1st.
Is Bitcoin mining worth the effort?
Despite worries that the firm may run out of money by October, counsel for Celsius assured investors that the company will turn a profit from mining. The US Department of Justice and the Texas State Securities Board dropped their objections to Celsius’s mining after the company stated that it would only sell mined Bitcoin for cash. The Texas State Securities Board had previously opposed Celsius’s mining ventures.
Furthermore, miner revenue has increased steadily after bottoming out in July, according to Blockchain.com. It stands at 22.451m at present.
Since May, the network difficulty has been on the downtrend. This increases Celsius’s chances of validating a block and earning Bitcoin (BTC), hence giving more Bitcoin (BTC). The network difficulty currently sits at 28.175t.
As of now, the Celsius native token, CEL, is trading at $2.41, up over 200% in the last 30 days. Furthermore, the token has risen over 100% in the last two weeks.
For the last seven days, Bitcoin (BTC) has risen 2.4% to $23,764.48.