Celsius transfers $125M Ethereum amid bankruptcy strategy

In a notable change of direction following its bankruptcy announcement, cryptocurrency lending giant Celsius has initiated a major transfer of Ethereum to leading exchanges. The company has deposited Ethereum worth $95.5 million to Coinbase and an additional $29.73 million to FalconX. This move signifies a strategic shift for Celsius, as it looks to navigate the complexities of its bankruptcy proceedings.

Despite these significant transactions, Celsius maintains a robust portfolio of cryptocurrency assets. Their holdings include over 539,000 ETH, valued at around $1.4 billion, 9,800 BTC with an estimated value of $419.2 million, and a range of other altcoins such as MATIC. This indicates that the recent Ethereum transfers are part of a broader strategy to manage the company’s assets during its financial restructuring.

Ethereum market reacts to Celsius’s decisions

The cryptocurrency market, particularly Ethereum, is closely watching Celsius’s financial maneuvers. Ethereum’s recent growth trajectory and the ongoing anticipation around potential Ethereum spot ETFs make the market particularly sensitive to these large-scale asset movements. Larry Fink, the CEO of BlackRock, which has applied for an Ethereum spot ETF, has highlighted the potential market benefits of such financial products. The decisions on these ETF applications, expected in the coming months, contribute to the market’s watchfulness over Celsius’s asset handling.

Celsius’s recent Ethereum transaction is part of an ongoing effort to liquidate assets and repay debts. In December 2023, the company sold Ethereum and other altcoins worth $243 million. Their decision to cease Ethereum staking, previously valued at $800 million, is seen as a step towards preparing for more extensive asset liquidation. The cryptocurrency community and investors are closely monitoring these developments, given the potential impact on the Ethereum market and the broader crypto landscape.

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