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Bitcoin Mining Firm Linked to Celsius Network Faces Possible Liquidation

Aug 28, 2024
  1. Management and Financial Issues
  2. Creditor Actions
  3. Financial Standing of the Company

Bitcoin mining firm Ionic Digital, owned by former Celsius Network customers, is facing potential liquidation after some creditors raised doubts about its management and financial condition.

Management and Financial Issues

Delays in going public and recent leadership changes have sparked dissatisfaction among shareholders. The company's auditor, RSM US, resigned in May, and CEO Matt Prusak left earlier this month.

Creditor Actions

At a New York bankruptcy hearing, attorney Joseph Sarachek said some shareholders are interested in forcing a liquidation of Ionic's assets. Another creditor discussed efforts to oust the company's board of directors.

Our client's office managed to contact several shareholders who wish to push for asset liquidation.

Financial Standing of the Company

Despite the criticism, Ionic remains cash flow positive with $200 million in assets. Company representative Gregory Pesce said Ionic is not seeking mergers or acquisitions but is open to shareholder proposals.

The company was formed to settle customer claims after Celsius Network declared bankruptcy in 2022. Despite the challenging market environment, Ionic Digital's financial standing remains stable.

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