Celsius Network LLC is changing its focus after emerging from bankruptcy. It was reported that it will be shifting to Bitcoin Mining under its strategic restructuring plan.

Likewise, the crypto lending company will transition to become a Bitcoin miner instead of a company that offers asset transfers. As it changes direction, the company will be rebranded and operate under the new name “Mining NewCo.”

Post-Bankruptcy Business Plans

Celsius Network has scaled down its original plans after emerging from bankruptcy. It decided to focus on Bitcoin mining after the U.S. regulators expressed skepticism about other businesses that it initially planned to work on, as per Reuters.

In its original scheme, Celsius’ restructuring plan included the management of cryptocurrency loans and earning "staking" fees by validating blockchain transactions. Now, it has changed its direction after getting feedback from the U.S. Securities and Exchange Commission (SEC).

In any case, a Manhattan bankruptcy court approved Celsius Network’s bankruptcy plan on Nov. 9. This paved the way for the company to return cryptocurrency to its customers as well as the formation of Mining NewCo owned by the company’s creditors.

Bitcoin Mining Business

Crypto Slate reported that the move of changing routes to focus on Bitcoin mining only shows that there has been a big shift in the company’s plans that involves crypto staking. Celsius Network is now moving towards mining which is now a fast-growing trend in the crypto space.

Finally, Mining NewCo is expected to officially begin its operations with lower management fees but higher liquid cryptocurrency distributions and may potentially offer greater returns to creditors.

“Celsius is in discussions with certain parties regarding the terms and conditions of the future management of the Mining NewCo. More details will be provided as soon as they are available,” Celsius Network said in a press release.

Photo by: Celsius Network Blog