When Celsius emerged in 2017, it brought anticipation of disrupting the industry with its innovative crypto lending platform. However, recent developments suggest that Celsius is heading towards a significant transformation, marking the beginning of a new chapter in its crypto journey.

According to a revised disclosure statement filed in the ongoing bankruptcy proceedings, Celsius app users will face a shutdown within the next 90 days. This decision aligns with Celsius’ experience in enabling crypto withdrawals for custody and withhold account holders. Consequently, users will no longer be able to access their Celsius accounts beyond this withdrawal window.

While the app’s impending closure may raise concerns, the company has outlined a plan to repay creditors. The repayment extends beyond the traditional definition of creditors and includes individuals who earned rewards on their digital assets from Celsius’ partner programs or accounts set up with other exchanges. To ensure a smooth distribution process, Celsius aims to promptly distribute over $2.03 billion worth of cryptocurrency, subject to market fluctuations. The company has even identified Paypal as a potential distribution agent for individual creditors in the United States.

Celsius’ restructuring efforts will result in a fresh start under a new entity named “NewCo,” which will be managed by Fahrenheit Group and owned by its customers. To ensure transparent operations, the company plans to seek regulatory oversight from the Securities and Exchange Commission (SEC). Additionally, Fahrenheit has set its sights on listing NewCo’s stock on NASDAQ, allowing owners to maximize profits and gain access to the capital market in the future.

Under the new structure, NewCo will shift its primary operations towards mining and staking. To support these endeavors, Celsius will collaborate with US Data Mining Group, Inc. for mining operations and enlist Proof Group Capital Management to manage staking operations.

As Celsius enters this pivotal phase, it signifies a new beginning characterized by a different corporate identity and strategic direction. While the imminent closure of the app may bring uncertainties, Celsius’ commitment to creditor repayment and the establishment of NewCo ensures a transparent and regulated future. With a focus on mining and staking, Celsius is positioning itself to navigate the evolving crypto landscape while maximizing value for its customers, owners, and the broader crypto community.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.