Celsius plans to unload $470 million worth of Ethereum stake to repay creditors in a move to boost ETH prices

adminJanuary 5, 2024

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Troubled cryptocurrency lender Celsius plans to unstake its existing Ethereum holdings ahead of an asset distribution plan to creditors that could benefit struggling ETH.

The lending company, which won court approval to convert to a Bitcoin miner, said its existing Ether holdings “provided the estate with valuable staking reward income.”

In preparation for asset allocation, Celsius has begun the process of divesting and rebalancing assets to ensure sufficient liquidity.
— Celsius (@CelsiusNetwork) January 4, 2024

The lender said it used staking rewards to cover costs incurred during the restructuring plan. It plans to use unlocked Ethereum “to ensure timely distribution to creditors.”

According to data from Nansen, Celsius currently accounts for more than a third of all Ethereum pending withdrawal.

According to an X post on PeckShield, Chelsea moved over 10,000 ETH worth $23.5 million to Coinbase and FalconX in the last 24 hours.

#PeckShieldAlert #Celsius Sent label addresses ~10.8K $ETH (~$23.5M equivalent) ~ #Coinbase and #FalconX ~10 hours ago pic.twitter.com/GRup7tYWhP
— PeckShieldAlert (@PeckShieldAlert) December 20, 2023

Impact on Ethereum price

Some analysts believe the unstaking event will ease selling pressure on Ether and set the token up for long-term gains.

I don’t think you guys understand how much weight is going to be lifted. $ETH When the Celsius vampires finally fall into oblivion and reclassify what’s left
Holds over $800 million $ETHIt was one of the largest stake holders and sold $20 million per share in the market continuously for several months https://t.co/ypnzY2nOAg
— Wazz (@WazzCrypto) January 4, 2024

Ether has recently underperformed its competitors. Prices have remained flat over the past month, while competitor Solana has risen 56%.