Celsius Network: Bitcoin Mining Profits Rise Despite Bankruptcy

Despite its ongoing bankruptcy proceedings, Celsius Network shows promising signs of revival in its latest update. The firm witnessed an 18% increase in the number of deployed Bitcoin mining rigs in April 2023, pushing the total active rigs to 53,000, reported Coinedition.

The report unveiled by Celsius, a now-bankrupt crypto lender, recorded its highest revenue from mining operations in the past six months. A monthly increment of 31% saw earnings touch $8.4 million in April, a significant rise from the $1.4 million recorded in the previous month. The surge in revenue and margins adds a silver lining to the beleaguered crypto lender’s cloud.

Filed in the U.S. Bankruptcy Court for the Southern District of New York, the update gave a detailed account of the company’s current operations. Apart from Bitcoin mining, the company’s activities encompass facilitating withdrawals for eligible customers and managing cash flow.

Further, the uptick in Bitcoin’s price boosted the company’s adjusted gross margin to 26%, up 10% from the previous month. Revenue per mined Bitcoin also witnessed a 16% rise to reach $28,863.

Prominent Celsius creditor Simon Dixon voiced his views on these developments via Twitter. Though welcoming the increase in rig deployment, he indicated that the 68% uptime of mining rigs could be better managed by contracting experienced operators. Dixon revealed that the deployed rigs represent only half of the firm’s crypto mining potential.

Celsius Network’s trajectory so far this year demonstrates a 55% increase in total revenue from Bitcoin mining. Even amidst bankruptcy, Celsius seems committed to maximizing its Bitcoin mining operations, a crucial step in restructuring and reviving the firm’s fortunes.