2. March 2024

Celsius Could Repay All Claims if Bitcoin, Ether Prices Double

• Celsius is battling a Chapter 11 bankruptcy with billions of dollars in claims made by various parties.
• Bank of the Future suggests that the troubled crypto lender could likely repay the claims if Bitcoin (BTC) and Ether (ETH) prices double their current market prices.
• A comparison between Fahrenheit’s recovery plans and the Blockchain Recovery Investment Consortium (BRIC) suggests that a total recovery of $3.519 billion exceeds the total assets available at $3.417 billion.

Celsius’s Chapter 11 Bankruptcy

Prashant Jha 15 hours ago Celsius could repay all claims if Bitcoin, Ether prices rose 2X — Simon Dixon Dixon said creditors should fight to get out of the bankruptcy proceedings before the end of 2023, or before the price of BTC and ETH hit the estimated mark. 2933 Total views 14 Total shares Listen to article 3:20 News Join us on social networks Bankrupt crypto lender Celsius is battling a Chapter 11 bankruptcy with billions of dollars in claims made by various parties.

Estimated Price for Repayment

A new estimate by the Bank of the Future suggests that the troubled crypto lender could likely repay the claims if the price of Bitcoin ( BTC ) and Ether ( ETH ) — two assets held by the firm — doubled their current market prices. Simon Dixon, the founder of Bank of the Future — a crypto-centered investment firm — tweetedthe estimated price BTC and ETH would need to reach for Celsius to repay all its claims and keep all other assets. Based on the final deal withthe Fahrenheit consortium, which wonthe bid to acquire ‌the assets ‌of Celsius in May, if ‌the BTC price touches $54,879 and ‌the ETH price reaches $3,750, Celsius could repay all claims from ‌theprice appreciationof bothassets.

Conversion into Bitcoin & Ether

In June, Celsius appealed in court to convert all its altcoins into Bitcoin and Ether to maximize ‌the valueoftheassets. EstimatedpriceofBTCandETHforfullrecoverySource: TwitterDixon noted that these estimates are based on “imperfect knowledge made by‌t he BF [Bankof‌t heFuture]internalinvestmentbankingteamwithnoaccesstoprivilegedinformation” .

Fahrenheit’s Recovery Plan

The new restructuring plan under Fahrenheit includes mining, institutional loans, investments valued at approximately$1 .4billionand$450millioninliquidcrypto .ThefirmalsosharedacomparisonbetweenFahrenheit’srecoveryplansandtheBlockchainRecoveryInvestmentConsortium(BRIC)—aholdingcompanyaffiliatedwiththeWinklevoss-ownedGeminiTrust—wind-downplans .Thetotalrecoveryundertheorderlywind-downcomesto$3 .519billion ,whichexceedsthetotalassetsavailableat$3 .417billion .This discrepancyisaccountedforbyvariablecosts .ComparisonbetweenFahrenheitplanandBRICwinddownSource:Twitter Thereturnstoretailborrowersisapproximately$339 million .BankoftheFutureestimatessuggeststherecoveryisabout65%forbothoptions ,whichcouldincreasetoabout75% ,assuming10%ofclaimsareunclaimed41 .4%ofrecoveryundertheFahrenheitaplanisin equity ,withtheremaining58 .6%inliquidcryptoOnly 2 %offull returnisin fiat currency;however ,therisksoffiatliquidityaresignificantlyreducedduetothecollateralizationofloanclaimsandinvestmentsonBitcoinandaltsheldbyCelsiusintrustfunds