Celsius, a cryptocurrency lender, has successfully emerged from bankruptcy proceedings and aims to repay over $3 billion in crypto and fiat to its creditors. Alongside this objective, the company has launched a new Bitcoin mining venture.

After filing for Chapter 11 bankruptcy over 18 months ago, Celsius has announced the formation of its Bitcoin mining company, Ionic Digital. Operated by Hut 8 and led by Hut 8’s Chief Commercial Officer, Matt Prusak, Ionic Digital will prioritize creditor recoveries. It is expected that Ionic Digital shares will become publicly tradable pending necessary approvals.

Celsius plans to distribute over $3 billion in cryptocurrency and fiat to creditors, settling claims with key stakeholder groups and establishing the MiningCo transaction. This milestone signifies the creation of Ionic Digital, Inc., the newly established Bitcoin mining firm.

Creditors have approved Celsius's bankruptcy exit plan. This course of action follows the suspension of withdrawals in June 2022, leading to the subsequent bankruptcy filing a month later. Celsius increased the crypto available for distribution to creditors by approximately $250 million, mainly through converting alternative cryptocurrencies to BTC or ETH.

Celsius intends to wind down its operations and cease its mobile and web applications by February 28. All creditor distributions will be facilitated through Paypal, Venmo, and Coinbase.

Despite initial speculation about Celsius's fate mirroring other bankrupt crypto lenders, the company's successful navigation through bankruptcy is attributed to an "extraordinary team effort" by David Barse and Alan Carr, members of the special board guiding the firm through these challenges.

The decision to halt withdrawals initially aimed to position Celsius strategically to fulfill withdrawal obligations over time, following a significant drop in its native token, Celsius (CEL). The bankruptcy hearing resulted in $4.7 billion settlements with the US Federal Trade Commission, Department of Justice, Securities and Exchange Commission, and the Commodity Futures Trading Commission. Celsius's former CEO, Alex Mashinsky, faces charges of financial fraud, CEL price manipulation, and misleading Celsius customers, with his trial scheduled for September.