In light of recent events, Celsius, a prominent crypto lending firm, may start offloading its significant holdings in (ADA), (MATIC), (SOL) and a few other altcoins beginning July 1, following a green signal from the judge supervising its bankruptcy case.
Per court documents from last year, December to be precise, Celsius had a cumulative holding of 90 million MATIC, 103 million ADA, 161,000 SOL, 3.3 million LINK, 1.8 million polkadot (DOT), 200,000 litecoin (LTC) and 106,000 AAVE as of November 25, 2022. However, some fog still surrounds the company’s existing stances in these assets and the quantum of such to be exempt from the impending sale.
These holdings, as we speak, are valued at over $170 million, indicating the substantial assets that Celsius controls. The company still holds several millions of dollars in stablecoins as well as 650 million of its proprietary CEL tokens. Hypothetically, according to Coinmarketcap data, the CEL tranche can yield around $100 million, but how much of this can be liquidated remains nebulous.
Be that as it may, with Judge Martin Glenn’s approval, Celsius is likely to start quitting many of these positions, leaning towards Bitcoin and Ether as the two key assets to be dispersed to its creditors, who have been waiting almost a year now for Amelioration. To quote Judge Glenn’s ruling, Celsius “may sell or convert any non-BTC and non-ETH cryptocurrency, crypto tokens, or other cryptocurrency assets other than such tokens that are associated with Withhold or Custody accounts … to BTC or ETH commencing on or after July 1, 2023.”
While on one hand, this move paints a gloomy picture for Celsius, forcing it to sell off major altcoin holdings, things might not be all that bleak. On the other hand, focusing on key cryptocurrencies like Bitcoin and Ether is likely to lead to a simplification of Celsius’s operations, potentially making the company more efficient. It would be really interesting to see whether this transition proves to be a boon for the company and its investors, or if it relegates Celsius to being a sleeping giant in the crypto space.
In essence, the all-clear signal from Judge Glenn looms high as a pivotal turn point in the tale of Celsius’s fortune. Will the company be able to flip the narrative by refocusing its crypto portfolio or will this further exacerbate their waning credibility is still a riddle to be unravelled.
Source: Coindesk
