Embattled crypto lender Celsius is taking decisive action to address its financial difficulties by moving over $125 million worth of its Ether (ETH) holdings to crypto exchanges in the past week. This marks a significant step towards fulfilling their commitment to begin repaying creditors who were left frozen after the company suspended withdrawals in June 2023.

The data, provided by Arkham Intelligence, reveals a series of strategic transfers between January 8th and 12th. $95.5 million was sent to Coinbase, a major cryptocurrency exchange, while $29.7 million went to FalconX, a crypto-focused institutional trading platform. These movements suggest that Celsius is preparing to liquidate some of its ETH holdings to generate the necessary funds for creditor repayments.

Despite this huge transfer, Celsius still holds a sizeable reserve of over 550,000 ETH, currently valued at approximately $1.36 billion. This may indicate that the company is not planning to completely divest itself of its Ethereum holdings, but rather utilizing a strategic portion to address immediate financial obligations.

Furthermore, on January 5th, Celsius unstaked 206,300 ETH, valued at $407 million at the time. The company claims that this unstated Ether will be used to cover costs incurred during its ongoing restructuring process and prepare for the upcoming creditor repayment phase.

Celsius's actions paint a picture of a company actively taking steps to rectify its financial situation and fulfil its obligations to creditors. While the large ETH transfer to exchanges might raise concerns about potential market impact, it also demonstrates Celsius' commitment to resolving its financial issues and paving the way for a potential future recovery.

The timing of these transfers however, coincides with the recent launch of several Bitcoin (BTC) and ETH futures exchange-traded funds (ETFs) in the United States. This suggests that Celsius may be leveraging the current market liquidity to sell their ETH holdings at favourable prices.

The exact details of Celsius' restructuring plan and creditor repayment timeline remain unclear. Further transparency from the company would be welcomed by investors and affected parties.

The long-term impact of these actions on Celsius' future and the wider crypto market remains to be seen. However, it is a significant development that highlights the ongoing challenges and efforts within the industry.