The Bankruptcy Court has approved Celsius Network’s plans to sell the first cryptocurrency issued to finance its operating expenses. Blok writes about it.

The crypto lending platform will use the funds received to pay for the services of critical suppliers, taxes and fees, utilities, insurance premiums and legal fees.

In the previous hearing, the creditors committee managed to block the sale of mined bitcoins.

Celsius’ revised draft petition eased concerns that the proceeds would be used for business or for-profit lending. The judge agreed that the firm would not be able to generate positive cash flow in bitcoin mining and this would have negative consequences.

According to the documentation, Celsius Mining is currently generating an average of 14.2 BTC per day.

In early July, the court allowed the company to spend more than $5 million to complete the construction of a mining facility in Texas. According to representatives of the platform, this could take about two months.

Representatives of the lenders expressed their readiness to apply for the appointment of an expert group to clarify these and other issues, citing the lack of transparency regarding the details of the costs of the mining business.

Creditors had previously told the court that they intended to enforce the 2004 Rule as part of a “large investigation”. It includes statements from interested parties and submission of documents in a process similar to what happens in civil litigation.

The next meeting will be held on 1 September. The creditors committee will reach agreement on the position on August 19.

On July 13, Celsius filed for Chapter 11 bankruptcy in New York court. The company said its liabilities exceeded its balance sheet assets by almost $1.2 billion.

On July 19, the company submitted a business restructuring plan. It includes the direction of a subsidiary mining company’s profit to compensate for losses of users and payments to creditors. Before that, Celsius Mining SEC application for public offering.

According to the latest estimate, the “hole” in Celsius Network’s balance sheet was $2.85 billion. From August to October, the platform will lose $137 million due to investments in the mining business and restructuring expenses as it has completely exhausted its cash reserves.

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