Celsius Repays $120m Debt, Liquidation Price Dips Below $5k
Celsius, the financially troubled crypto network, has been steadily repaying loans to sustain itself. In its latest slew of repayments, Celsius has paid off $120 million impending debt to Maker.
Neither Celsius nor Maker has confirmed this update. However, the funds were transferred to vault #25977, the address that allegedly belongs to Celsius. The payment was made in three installments between July 3 and 4.
These payments have been made to Maker, the DeFi protocol of DAI. The total value of these three transactions is roughly around $120 million.
Celsius started July with massive debt repayments. Up until now, Celsius has paid Maker over $150 million and still has $82 million in debt left. Celsius has promised to safeguard and preserve the assets on its platform. For this, the company is exploring different possible solutions.
A recent statement released by Celsius stated, “We continue to take important steps to preserve and protect assets and explore options available to us. These options include pursuing strategic transactions as well as a restructuring of our liabilities, among other avenues. These exhaustive explorations are complex and take time, but we want the community to know that our teams are working with experts from many different disciplines.”
The current market turmoil has pushed Celsius to the brink of bankruptcy. However, the company has been pushing hard to avoid insolvency. So far, CEL has rallied into the bullish market for the last three days and has risen by 68.51%. In fact, the native token has shot up by almost 17% in the last 24 hours.
Apart from Maker, Celsius has other financial obligations to fulfill. As Vault #25977 had used Wrapped Bitcoin as collateral, it had always faced the risk of liquidation. Taking into account Celsius’ debts, the liquidation mark was about $17k.
So when BTC started dipping, the risk of liquidation surged. As the price of Bitcoin came dangerously close to the benchmark, Celsius faced a risk of forced liquidation. At this point, the platform suspended withdrawals. With the repayment of the $120 million debt, the liquidation mark is now below $5k.
Celsius seems to be trying its best to save assets on its platform and get back on its feet. However, it’s interesting to note that none of the investors were particularly interested in saving the platform and yet, Celsius has managed to pay back a lot of its debts.
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