Celsius report shows $2.8 billion in crypto liabilities, dwindling cash flow

Crypto lender Celsius is running out of cash fast, according to new court documents.

Projections from law firm Kirkland & Ellis filed yesterday show the lender could run out of funds by October. The firm also owes depositors $2.8 billion more in crypto than it's currently holding.

Celsius entered Chapter 11 bankruptcy last month after cascading crypto prices forced it to halt withdrawals. Since then, it's been working its way through a restructuring process and examining ways to pay creditors. Early in the process, documents showed a $1.2 billion hole in its balance sheet, with the firm reporting $4.3 billion in assets and $5.5 billion in liabilities.

Now, it appears the firm's financial standing has gotten worse. 

It still has about $130 million in cash balance as of August, but that's set to run out by October. With all current operating, capital and restructuring expenditures, Kirkland & Ellis projects the firm will be nearly $40 million in the red by the close of October.

Monthly Cash Flow Table from Kirkland & Ellis filing

Still, the greater hole is in its crypto holdings. The firm reported significant gaps between assets held and liabilities in the filing, amounting to a $2.8 billion hole in crypto liabilities. The firm currently has $348 million in BTC on hand, with $2.5 billion in BTC liabilities. There's about a $1 billion spread between ETH liabilities and ETH on hand, and a little less than $700 million gap in USDC liabilities. Little to no WBTC and stETH liabilities and holdings of $557 million and $683 million respectively make up a little ground, along with an additional $438 million in its native CEL token after disbursements. The lender also has a gap of $625 million in other coins.

Coin Report from Kirkland & Ellis filing

The figures were filed ahead of the firm's second day hearing, which is scheduled for tomorrow at 2 p.m. EST. A meeting of creditors will also occur on August 19.