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Celsius Shifts to Bitcoin Mining Following Bankruptcy Filing

Celsius's strategic shift comes in the wake of the company filing for bankruptcy, aiming to restructure its financial position

Photo by Dmytro Demidko / Unsplash

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Cryptocurrency lending platform Celsius is undergoing a significant transformation, pivoting its operations toward Bitcoin mining, according to an updated bankruptcy plan. This is a departure from it's previous court-approved plan that had a focus on staking as well, and takes place after receiving feedback from the US Securities and Exchange Commission (SEC).

The move into Bitcoin mining – a notable departure from its previous lending-focused business model – is a bold attempt by the company to diversify its revenue streams and regain financial stability. By harnessing the power of mining, the company said it aims to secure a steady flow of Bitcoin rewards, leveraging its existing infrastructure and expertise in the crypto sector.

As Celsius Network navigates this new path, it faces both challenges and opportunities in the competitive world of Bitcoin mining.

While mining revenue as seen an upturn recently, with growing bitcoin prices amid renewed public interest in the token, mining companies are racing to lock in profits before the next bitcoin halving – when rewards for validating transactions on the blockchain are cut in half as part of a planned slowdown in the issuance of bitcoin – expected in April 2024. At the same time, Bitcoin's hashrate – the computational power required to mine a token – is at an all-time high