In a recent court filing, crypto lender Celsius revealed its decision to transition into a new company that will solely concentrate on mining bitcoin. This comes after feedback from the U.S. Securities and Exchange Commission (SEC) regarding certain aspects of Celsius's reorganization plan.

Previously, Celsius had outlined a reorganization plan that included both mining and staking activities. However, in response to the SEC's input, the company has now decided to narrow its focus to bitcoin mining.

CoinDesk had reported earlier on Monday that the SEC requested additional information regarding the former crypto lender's assets, causing a slight delay in the court-approved reorganization plan.

The implementation of Celsius's reorganization was previously entrusted to Fahrenheit Holdings, a group comprising Arrington Capital and crypto miner U.S. Bitcoin Corp. The acquisition bid by Fahrenheit Holdings to acquire Celsius was approved by the court in May 2023. The plan involved establishing a new company registered in Delaware, temporarily referred to as "NewCo." The intention was for NewCo to engage in both mining and staking operations, as per the court-approved plan.

The recent filing by Celsius states that modifications to the plan will be pursued to reflect the transition to the new mining-focused company. The company expects such modifications will not require resolicitation of the plan and anticipates the distribution of assets to creditors to commence in January 2024.

As a result of the SEC's feedback, Celsius now plans to seek registration of shares for a new publicly traded bitcoin mining company, which will be owned by Celsius customers and referred to as "Mining NewCo." The core business of this proposed company will be bitcoin mining. However, due to regulatory reasons prompted by the SEC's feedback, certain assets initially intended to be transferred to Fahrenheit Holdings will now be retained and administered by Celsius's estates. They will be monetized by the Plan Administrator and/or Litigation Administrator for the benefit of creditors.

It is worth noting that the recent changes to Celsius's reorganization plan align with its broader goal of focusing solely on mining bitcoin. The company's decision reflects the growing importance of mining in the cryptocurrency industry and underscores its commitment to adapt to evolving regulatory requirements.

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