Celsius announces plans to take Bitcoin mining business public

Celsius announces plans to take Bitcoin mining business public

Celsius announces plans to take Bitcoin mining business public

Crypto lending platform Celsius is planning an IPO of its mining subsidiary, Celsius Mining, LLC, according to an announcement that the New Jersey headquartered company made on Monday.

The press release outlines details of the submission of Form S-1 to the Securities and Exchange Commission (SEC). The SEC requires this registration prior to a company listing shares on an exchange like the Nasdaq or the New York Stock Exchange (NYSE). The registration will become effective once the SEC completes its review of the submission.

Celsius Network’s mining entity has amassed a mining fleet of 22,000 ASIC miners - the majority of which are latest generation Bitmain AntMiner S19s. In March Celsius Mining signed a co-location agreement with Mawson Infrastructure Group for a 100 megawatt facility.

Publicly listed miners

To date, the company which is known for its crypto lending products has invested $500 million into its mining subsidiary. In 2020 it issued loans and equipment leases to Bitcoin miners such as Core Scientific and Argo Blockchain.

The company will join a growing list of firms in the mining space who have gone public. These include mining hardware manufacturer, Canaan, Inc. (CAN), Hive Blockchain (HIVE) which is listed on the Toronto Venture Exchange, and Bitcoin mining and energy technology company, Cleanspark (CLSK).

Others include Hut 8 (HUT), BitNile (NILE), Bitfarms (BITF) and Riot Blockchain (RIOT).

Industry and service user reaction

Swan Bitcoin CEO and Riot Blockchain advisory board member Cory Klippsten took to Twitter with his response:

“Celsius doesn’t have an actual community, just a bunch of indentured servants hoping $CEL pumps. @mashinsky should take that mining money and pay it back to his shareholders.”

Some Celsius service users echoed this view, calling for CEL token holders to be rewarded as part of the deal. CEL is a token held by users of Celsius app, who are encouraged to take their staking rewards in the CEL token with the promise of a better rate of return.

Alex Mashinsky, CEO and founder of Celsius, told Exodus simply that "we continue to add utility to the CEL token."

The CEL token itself has fallen in value by 62% over the course of the past month and 88% over the past year. According to its website, Celsius facilitates 1.7 million users on its platform.The app has come in for criticism for investing funds that users have deposited with it recklessly.

During last week's LUNA meltdown, it emerged that Celsius had dodged a bullet and managed to extract $500 million from Terra’s Anchor Protocol before it imploded. Prior to imploding, Anchor Protocol offered depositors yields of 20%.

This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.

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