Simon Dixon: Celsius will pay all claims in the event that Bitcoin and Ether prices rise 2X.

Simon Dixon: Celsius will pay all claims in the event that Bitcoin and Ether prices rise 2X.

Dixon said that creditors should try to exit bankruptcy proceedings by the end of 2023 or before BTC and ETH prices reach the estimated price.

News

Join us on Social Networks

The bankrupt crypto lender Celsius has been battling Chapter 11 bankruptcy, with claims of billions of dollar from various parties. According to a new estimate from Bank of the Future, the crypto lender would be able to repay the claims in the event that the prices of Bitcoin ( BTC), and Ether ( ETH), two assets owned by the company, doubled.

Simon Dixon, the CEO of Bank of the Future, a crypto-centric investment firm, tweeted the estimated BTC and ETH price that Celsius would have to reach in order to pay all of its claims and retain all of its assets.

According to the final agreement with Fahrenheit, which was awarded the bid in May to purchase the assets from Celsius, if BTC reaches $54,879, and ETH reaches $3750, Celsius can repay all claims based on the appreciation of the prices of both assets. In June, Celsius filed a court appeal to convert its altcoins to Bitcoin and Ether in order to maximize asset value.


Estimated price of BTC and ETH for full recovery. Source: Twitter

Dixon stated that the estimates were based on the “imperfect knowledge” of the BF (Bank of the Future) internal investment banking team, which did not have access to privileged data. The new restructuring under Fahrenheit will include mining, institutional lending, investments worth approximately $1.4 billion, and $450,000,000 in liquid crypto.

The firm also compared Fahrenheit’s recovery plans with those of the Blockchain Recovery Investment Consortium, a holding affiliated with Winklevoss’ Gemini Trust. The orderly wind down results in a total recovery of $3.519 billion. This is more than the $3.417 billion total assets. Variable costs are responsible for this discrepancy.


Comparison between Fahrenheit plan and BRIC wind down. Source: Twitter

Return to retail borrowers amounts to approximately $339million. Bank of the Future’s estimates suggest that the recovery for both options is approximately 65%. This could rise to around 75% if 10% of the claims are not claimed. The Fahrenheit Plan recovers 41.4% in equity and the remaining 58.6% is liquid crypto. Only 12.4% recovery under BRIC orderly Wind Down is in equity. The remaining 87.6% are liquid crypto.

Related: Celsius adds 428K stETHs to Lido’s growing withdrawal queue

Dixon said that creditors should try to avoid bankruptcy before 2023 or the estimated price of BTC or ETH. He said that in order to avoid “another carpet pulling, we will have to fight against it if this comes up.”

You can collect this article in NFT format to preserve the moment and show support for independent journalism.

Hall of Flame: Tiffany Fong, FTX, Celsius and NY Post.