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- 1 Celsius halted user withdrawals citing “extreme market conditions” in June 2022.
- 2 Miners’ revenue fell to $41.6 Million on November 21.
Bankrupt cryptocurrency exchange Celsius Network is turning to Bitcoin (BTC) mining according to the news agency Reuters. The decision comes after regulators showed skepticism towards the company’s other “planned business lines.” Celsius was among the firms that went down during the Luna ecosystem collapse in 2022. The company’s former CEO Alex Mashinsky was arrested on criminal and civil charges in July.
A Chance For Revival
A Manhattan court had approved the company’s Chapter 11 plan earlier this month. The restructuring plan will include returning cryptocurrency to customers and creating a firm owned by the company creditors, according to Reuters. The crypto exchange was valued at $3 Billion before falling into bankruptcy.
The company halted user withdrawals, transfers, and swaps citing “extreme market conditions” in June 2022. They reportedly had 1.7 Million users onboard. They cut 23 percent of the staff in the following month. CEO of data aggregator KeyFi, Jason Stone, accused the exchange of operating like a ponzi scheme.
Bitcoin mining is growing in the United States after China called for a blanket ban on all activities related to the sector in 2021. The balance of power was distributed among countries like the US, Kazakhstan, Canada, and more. However, data aggregator Statista shows China accounts for 21 percent of the global BTC mining hash rate.
Halving, an event increasing mining difficulty, is due next year. Many believe it may have a positive impact on Bitcoin’s price. Ark Invest CEO Cathie Wood and BitMEX CEO Arthur Hayes both believe that BTC will reach $1 Million.
The former said in an interview, “If people lose faith in the bond market and this fiat artificial construction that we’ve created over the past 80 to 100 years — this global economy and how it’s been structured — if we lose confidence in that, then the amount of money that’s going to be looking for an alternative is going to be something that we’ve never seen before.”
Crypto miners are looking to enhance their fleet for the halving. The event will cause the BTC reward received per block added to the blockchain to reduce to 3.125 Bitcoin. Currently, it is at 6.25 BTC. CleanSpark, a public Bitcoin mining company, bought 45,000 S19 XP machines. Another miner, Marathon Digital, sent an order to acquire 78,000 of those machines.
Riot Platforms, the biggest crypto-miner in the US, is reportedly developing a Bitcoin mine in Navarro County Texas. The facility is expected to have an energy capacity of 1 GW. Some activists note that the structure’s development will likely exploit the region’s resources.
Miners’ revenue fell to $41.6 Million on November 21 according to data aggregator Blockchain.com. The figure peaked at $46.8 Million a couple of days ago. As of now, Bitcoin was changing hands at $36,648, losing nearly 2 percent value in the past 24 hours.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
