Cryptocurrency lender Celsius Network said bitcoin mining is key to the company’s restructuring efforts.
New Jersey-based Celsius received approval from U.S. Bankruptcy Judge Martin Glenn to spend $3.7 million in construction costs at a new bitcoin mining facility; and $1.5 million on customs and duties on imported bitcoin mining rigs.
Patrick Nash, a lawyer for Celsius, told Glenn that bitcoin mining could provide a way for the company. Which halted other business operations like its cryptocurrency lending, to repay customers, whose assets its froze; in the weeks leading up to its bankruptcy filing.
In a world where the crypto market rebounds, the mining business has the potential to be quite valuable,” Nash said.
Celsius’ assets shrank amid the extreme volatility, and its freezing of customer accounts was an attempt to stem losses. Celsius hopes the mining effort will help it repair its relationship with customers. Able fight for control over the bitcoin mining operations.