Celsius could repay all claims if Bitcoin, Ether prices rose 2X – Simon Dixon

Dixon said creditors should fight to get out of the bankruptcy proceedings before the end of 2023, or before the price of BTC and ETH hit the estimated mark.

Bankrupt crypto lender Celsius is facing a Chapter 11 bankruptcy with billions of dollars in claims made by various parties. The Bank of the Future, a crypto-focused investment firm, estimates that Celsius could potentially repay all its claims if the prices of Bitcoin and Ether (two assets held by Celsius) double their current market prices.

According to Simon Dixon, the founder of the Bank of the Future, if the price of Bitcoin reaches $54,879 and the price of Ether reaches $3,750, Celsius could repay all its claims from the price appreciation of both assets. It’s important to note that these estimates are based on “imperfect knowledge” from the Bank of the Future’s internal investment banking team and lack access to privileged information.

Celsius has a new restructuring plan under the Fahrenheit consortium, which includes mining, institutional loans, investments valued at approximately $1.4 billion, and $450 million in liquid crypto. The comparison between Fahrenheit’s recovery plans and the wind-down plans of the Blockchain Recovery Investment Consortium (BRIC) shows that the total recovery under the orderly wind-down exceeds the total assets available. The estimated recovery for both options is around 65%, which could increase to about 75% if 10% of claims remain unclaimed.

Dixon advises creditors to try to get out of the bankruptcy proceedings before the end of 2023 or before the prices of BTC and ETH reach the estimated marks. He emphasizes the need to fight hard against any potential “rug pull” to avoid further losses