Celsius Network has commenced disbursing funds to its creditors, totaling around $3 billion in cryptocurrency and fiat currency. Additionally, the company has unveiled plans to integrate a new Bitcoin mining entity named Ionic Digital Inc., which will be collectively owned by Celsius's creditors and managed by Hut 8 Corp.

The distribution of over $3 billion signifies a significant milestone for Celsius Network, considering the past uncertainty surrounding the company's future along with other crypto firms. Following 18 months of concerted efforts, including collaboration with the core team, stakeholders, and relevant parties, Celsius successfully emerged from Chapter 11 bankruptcy proceedings. The company emphasized navigating through legal complexities and regulatory investigations in its announcement.

With approval from 98% of the company's account holders, Celsius is executing the distribution plan outlined and sanctioned by the Bankruptcy Court for the Southern District of New York.

Feedback from the US Securities and Exchange Commission also contributed to Celsius reaching this pivotal moment.

Under the MiningCo Transaction, which received approval from the Bankruptcy Court on December 27, 2023, Celsius is transitioning operations in collaboration with the Official Committee of Unsecured Creditors (UCC).

The distribution includes approximately $250 million increment to creditors, achieved through the conversion of altcoins to ETH or BTC, as part of the settlement conducted in cryptocurrency.

Interim CEO Chris Ferraro highlighted the company's commitment to achieving the best outcome for creditors, emphasizing speed and value maximization. The distribution encompasses crypto, fiat, and stock in Ionic Digital.

David Barse and Alan Carr attributed Celsius's successful reemergence from Chapter 11 to teamwork and collaboration with partners like Hut 8. The Special Committee of the Board of Celsius commended the company's resilience in navigating challenges and staging a comeback.

Matt Prusak, Chief Commercial Officer of Hut 8, assumes the role of Chief Executive Officer at Ionic Digital, tasked with overseeing the venture's Bitcoin mining operations in line with the 4-year management agreement.

Looking ahead, Celsius Network intends to wind down or discontinue its web and mobile applications.

Meanwhile, CEL, Celsius's native token, continues to experience a decline, with a 6% drop observed in the last 24 hours, bringing its value to $0.1728. The token's market cap and 24-hour volume have also decreased by 6% and 22.46%, respectively.