Celsius Receives Approval from Creditor Committee for Conversion of WBTC to Bitcoin

03/04/2023 14:56 • Crypto & Markets • 67 views

On March 4, according to a document in the Chapter 11 bankruptcy protection proceedings of Celsius on March 3, the conversion of 22962.8 WBTC to Bitcoin by Celsius on February 28 was carried out with the consent of the Celsius creditor committee.

Cersius converted nearly 23000 WBTC to BTC on Tuesday with the consent of the creditor committee

Interpretation of the news:

Celsius Network, the cryptocurrency lending platform, announced that it has received approval from its creditor committee for the conversion of 22,962.8 Wrapped Bitcoin (WBTC) to Bitcoin. The announcement was made on March 4, through a document in the Chapter 11 bankruptcy protection proceedings of Celsius.

According to the document, the conversion of WBTC to Bitcoin was carried out on February 28, with the consent of the Celsius creditor committee. The conversion implies that Celsius can now sell a significant amount of Bitcoin, which would help the company raise more funds.

The decision to convert the WBTC to Bitcoin indicates that Celsius is taking steps to reduce its risk exposure. In the short term, this position change implies that Celsius can free up capital needed for its day-to-day operations. In the long term, the move is motivated by the increasing stability of Bitcoin, which has become a more reliable store of value.

The WBTC tokens that were converted to Bitcoin were previously held as collateral, and the conversion allows Celsius to access a more stable currency. Celsius is not the only company that is converting its WBTC to Bitcoin; other institutional investors have also been doing so. The rise in demand for Bitcoin has caused the currency to increase in value by more than 400% in the last year, making it an attractive investment opportunity.

Celsius Network filed for Chapter 11 bankruptcy in December 2020, after it found itself unable to pay outstanding debt obligations. However, Celsius has continued to operate normally, with the bankruptcy process allowing it to restructure its debt and operations in a more manageable way.

In summary, Celsius Network has received creditor committee approval for the conversion of WBTC to Bitcoin. This move allows the company to reduce its risk exposure and take advantage of the increasing stability of Bitcoin. The conversion is part of Celsius’ efforts to raise funds as it navigates its Chapter 11 bankruptcy proceedings.

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