Celsius Network plans to unstake nearly $470 million worth of Ether tokens to meet repayment obligations, according to reports.
Nansen, a data analytics firm, reported that Celsius Network has 206,300 Ether tokens in the staking withdrawal queue.
Celsius Network confirmed in a recent announcement that it is recalling and rebalancing crypto assets to facilitate “timely distributions” to creditors, including staked Ether tokens awaiting withdrawal.
In its Jan. 5 statement, Celsius Network revealed it is moving assets to create liquidity for creditor distributions as part of its plan to emerge from bankruptcy proceedings.
As part of its plan, Celsius Network will unstake existing Ether holdings to fund creditor distributions using staking rewards.
The liberated Ether will offset costs associated with the ongoing restructuring process, as stated by Celsius Network.
For customers waiting over a year for funds, news of an upcoming distribution is a positive development, according to Celsius Network’s recovery plan, which includes Bitcoin or Ethereum distribution.
Nansen’s blockchain analytics data shows a significant portion of Ethereum tokens in the pending withdrawal queue belongs to Celsius Network.
With 206,300 ETH in the queue, the value is $468.5 million based on current prices. In addition, Nansen’s data reveals that 19,906 validators have been waiting for a full exit.
Concerns about a potential Ether price decrease upon the release of 206,300 ETH from the pending withdrawal queue have been expressed, but some argue it could be positive for the market’s long-term health.
“I don’t think you guys understand how much weight will be lifted off ETH when Celsius vampires finally fuck off into oblivion and redist what’s left.”
Celsius Network’s collapse was part of the 2022 crypto contagion, leading to several crypto lenders filing for bankruptcy.
However, following bankruptcy, Celsius Network shifted focus to Bitcoin mining, selling its remaining staking infrastructure in November 2023 and scaling back lending ambitions.
Despite the presiding judge, Judge Martin Glenn, disapproval of Celsius Network’s sudden pivot to Bitcoin mining, this is the path the company is towing.
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