Over the last two years, the company has invested over $500 million dollars into Celsius Mining to make crypto mining its other revenue-generating stream.
On Monday, May 16, cryptocurrency lender Celsius Network submitted its application to the US Securities and Exchange Commission (SEC). The S1 draft registration speaks of taking the company’s crypto mining subsidiary, Celsius Mining, public.
However, Celsius Mining will proceed to its Initial Public Offering (IPO) only after the SEC completes its due review process. Later, the company will list its shares either on the Nasdaq or New York Stock Exchange (NYSE). The official press release reads:
“Celsius Network is excited to announce that its wholly-owned Bitcoin mining subsidiary, Celsius Mining LLC, has recently submitted confidentially a draft registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”). The registration statement is expected to become effective after the SEC completes its review process, subject to market and other conditions”.
The Growth of Celsius Network and Mining Unit
Celsius became popular as a crypto lending platform allowing investors to earn interest on their crypto holdings. The company had to, however, go through strong regulatory pressure for offering crypto lending services to retail players. Besides, the company has also been taking a lot of efforts to grow its Bitcoin mining business.
The company has so far invested over $500 million dollars into Celsius Mining. It has also used these funds to purchase more than 22,000 ASIC miners, a majority of which are the powerful Bitmain’s AntMiner S19 machines released two years ago in May 2020. This is when the company started its full-fledged expansion in the Bitcoin mining business.
Celsius Mining is just a diversified investment strategy for the company. On the other hand, lending still continues to remain Celsius’ primary business. Earlier this year in April, Celsius eventually discontinued its Earn product for unaccredited investors after several “ongoing discussions” with the regulators.
The recent filing comes at a time when the broader equity market and crypto stocks have been tanking. Some of the top companies like Coinbase (NASDAQ: COIN) have witnessed severe correction on Wall Street. Amid rising inflation, geopolitical unrest, and recessionary fears, investors have been liquidating their risk-ON assets.
But Celsius Mining continues to move ahead with its plan. Recently, it signed a 100-megawatt co-location and $20 million debt deal with Bitcoin (BTC) miner Mawson (MIGI).
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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