The embattled crypto-centric company Celsius has continued to repay loans owed to various lenders as it charts a course for recovery. Since announcing it was suspending all withdrawals, exchanges and transfers between accounts citing “extreme market conditions”, the company has been forced to double its refund figures to avoid being forcibly liquidated.
Transactions that were tracked in Celsius-linked vault #25977 show the company repaid a $50 million Bitcoin loan on Monday, lowering its BTC liquidation price to $8,839 before paying another $64 million , bringing the liquidation price down to $4,900. While the company has repaid other loans, albeit in smaller installments, these are the largest repayments made by the company since June 13. Previously, the company moved $77 million (in stablecoins) into the wallet it uses to pay off its debt positions days after sending 67,000 ETH to FTX.
As of this writing, Celsius’ vault now has 23,962 WBTC collateral ($1.8 billion) and an outstanding loan of $82 million. However, following repayments, its collateral ratio increased to 577.81%, meaning less risk for its lenders.
As reported by ZyCrypto, Celsius has been working around a recovery plan since it halted operations for its 1.7 million users on June 13. In a blog dated June 30, the company assured customers that it would “take significant steps to preserve and protect assets and explore available options.”
“These options include pursuing strategic transactions as well as a restructuring of our liabilities, among other avenues,” written Celsius.
According to a report published Sunday by the Israeli newspaper Calcalist, Celsius also laid off some 150 employees, including some Israelis, in a bid to cut expenses.
A petition to call a shareholders’ meeting aimed at finding the best recovery plan for Celsius depositors and shareholders has also been proposed. According to Simon Dixon, CEO of BnkToTheFuture and one of Celsius’ largest individual shareholders, the company should prioritize depositors in its recovery plans since “non-depositors and non-shareholders will only make predatory offers” .
That said, while Celsius’ financial health is at critical levels, its strategic financial moves have been a sight to watch and could be the true measure of the entire blockchain industry emerging from this crypto winter.