Publications
Publications
- November 2023 (Revised April 2024)
- HBS Case Collection
Celsius Network Inc.: Fear, Uncertainty, and Doubt in the Brave New World of Crypto Bankruptcy
By: Stuart C. Gilson and Sarah L. Abbott
Abstract
In July 2022, Celsius Network filed for Chapter 11 bankruptcy. CEO Alex Mashinsky acknowledged that Celsius had grown its assets “faster than the Company was prepared to deploy [them]” and as a result had made “certain poor asset deployment decisions.” Two months after filing, Celsius initiated a marketing and sale process to identify potential buyers for its assets. By April 2023, the field was reduced to NovaWulf and Fahrenheit, LLC. Both bidders proposed reorganizing Celsius’ business as a going concern and giving its creditors and 1.7 million customers near-total ownership of the reorganized company. However, the ultimate fate of Celsius’ many stakeholders remained anything but clear.
Keywords
Cryptocurrency; Chapter 11; Restructuring; Insolvency and Bankruptcy; Asset Management; Acquisition; Borrowing and Debt; Financial Services Industry; United States
Citation
Gilson, Stuart C., and Sarah L. Abbott. "Celsius Network Inc.: Fear, Uncertainty, and Doubt in the Brave New World of Crypto Bankruptcy." Harvard Business School Case 224-044, November 2023. (Revised April 2024.)