As bankruptcy proceedings continue, Celsius will burn $137.2M in 3 months

Celsius, the embattled cryptocurrency lender, declared Chapter 11 bankruptcy in July and filed new documents in court on August 14 detailing its budget for August through October.

Celsius expects its net cash flow to be negative by $137.21 million in the three months ending in October, according to court documents.

The major contributor to the negative cash flow is the high operating expenses, which total $85.37 million for the period. The lender has set aside approximately $13.95 million of the $85.37 million for employee pay until October. Another $57.27 million is set aside for hosting costs associated with mining activities.

Furthermore, the documents revealed that Celsius expects to spend approximately $33.48 million on restructuring activities alone by the end of October.

According to the documents, the lender's liquidity at the end of August is expected to be around $66.39 million as a result of the decreasing cash flow. However, the figure is expected to fall to a negative $33.92 million by the end of October, down from $11.05 million in September.

Celsius also filed a coin report outlining its crypto assets and liabilities, in addition to the expenditure forecast. As of July 29, Celsius had received 100,669 Bitcoin (BTC) deposits from its users, according to the document. However, at the end of July, the lender only had 14,578 BTCs, which were worth around $348 million at current prices.

The document revealed that the lender's total Bitcoin liabilities total 104,962 Bitcoins, worth approximately $2.5 billion. As of July 29, Celsius also had $557 million in Wrapped Bitcoin (wBTC).

Similarly, Celsius' total Ethereum (ETH) liabilities total 1,045,291 ETH, which is equivalent to approximately $1.78 billion at current prices. However, as of the end of July, the company owned less than half that number of Ethereum, valued at around $713 million at current prices. According to the document, Celsius converted 410,514 Ethereum tokens to Lido staked Ethereum (stETH) — its stETH holdings were worth approximately $683 million as of July 29.

It is worth noting that both wBTC and stETH were trading at a slight discount to Bitcoin and Ethereum at the time of writing.

Celsius also has a USD Coin (USDC) holdings deficit. According to the document, the lender owes $944.84 million in USDC tokens while owning only $278.75 million in USDC on July 29.

However, with only $323 million in liabilities and $761 million in holdings, the lender has a large surplus of CEL tokens.

At the end of July, the lender's total token liabilities were $6.67 billion, but its digital assets were only $3.82 billion. Celsius now has a total deficit of $2.84 billion.