Woes facing the bankrupt crypto lending firm Celsius LLC seem to have adopted a different aspect. August 14 court filings showed that contrary to the initial $1.2B deficit claims, Celsius’ actual debt hovers at $2.85 billion.
The lender filed for chapter 11 insolvency on July 14 following an extreme market atmosphere that saw the company suspending transfers, swaps, and withdrawals. The company stated that its overall liabilities hovered at $5.5B against $4.3B in total assets during its July filing. That indicated a $1.2B deficit.
However, the tale was different on the August 14 filing. Celsius’ liabilities wavered at $6.6B, whereas total assets were worth $3.8 billion. That sees the lender’s debt standing at $2.8B.
Meanwhile, the coin report in the filing had Celsius disclosing 104,962 BTC in Bitcoin debt to investors, from which it lost over 50%. Furthermore, the company revealed holding 14,578 BTC and wrapped Bitcoin worth $557 million.
The court documents by the distressed lender show the firm’s monthly cash flow prediction confirmed $129,830,000 in cash balance at the start of the month. However, considering the present operating, restructuring, and capital expenditures, Celsius projects liquidity at (negative) -$33.9M by this month’s end.
CEL’s Separate Mind
CEL continued to surge during this publication despite escalating Celsius troubles. Coinmarketcap data shows CEL was among the top token as far as upsides within the past seven days are concerned.
The week saw it gaining 41.96% to trade around the $2.78 value area at this writing. Also, Santiment data shows CEL’s trading volume has exploded astronomically since the Celsius ordeal emerged.
Considering price growth recorded over the past month, the 30-day MVRV shows investors enjoyed profits with a +30.74% reading. Furthermore, the token sees positive market sentiment despite the reality that Celsius may soon close its doors.
The daily chart shows CEL’s MFI (Money Flow Index) and RSI (Relative Strength Index) saw bearish retracements after peaking at 95 and 93, respectively. While publishing this blog, the MFI and RSI maintained downtrends at 66 and 63. Buying momentum appears to lose its strength. Hence, caution is essential.
Stay tuned for upcoming updates.
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