Celsius Network Pays Off Another $64 Million Bitcoin Loan: Liquidation Price Plummets to $4,967
JUST IN: Celsius Network continues its efforts to stabilize its position by paying off another $64 million towards its Bitcoin loan. This significant repayment has dramatically lowered their liquidation price to a critical $4,967.
The news comes after Celsius Network's aggressive debt repayment strategy. Yesterday, the liquidation price was $8,838.57 after they paid off a $50 million BTC loan. Now, following this latest $64 million payment, the liquidation price has fallen even further, settling at $4,966.99 – precariously close to being triggered.
Aggressive Debt Repayment: A Timeline of Celsius' Bitcoin Loan Reduction
This recent $64 million payment is part of a series of strategic moves by Celsius to reduce its debt burden. Earlier, they repaid another $34.43 million of its debt to MakerDAO, marking the second such repayment as the former blue-chip company tries to avert a total collapse.
The transactions, tracked to a vault linked to Celsius, reveal consistent efforts to reduce their Bitcoin loan. The initial $50 million repayment on Monday significantly lowered the BTC liquidation price.
Celsius Network & MakerDAO: A $120 Million Repayment Impact
Celsius's efforts extend beyond Bitcoin loans. They also repaid $120 million to Maker, drastically reducing the liquidation price of its DAI loan to below $5,000. This included paying the remaining $41.2 million of the loan in DAI, the Maker protocol's stablecoin. The freed WBTC can potentially be sold to cover withdrawals.
Clearing the Board: Celsius's Push Towards Zero Liquidation Price (Now Achieved for Another Loan)
While the $4,967 liquidation price is still a concern, Celsius has shown its ability to drive that number down, even to zero on other loans. The recent $41.2 million payment eliminated the liquidation price on a separate loan, bringing it to $0.00. This demonstrates Celsius's commitment to minimizing risk and securing its financial future.
We will continue to monitor Celsius Network's financial maneuvers and report on any further developments regarding their Bitcoin loans and liquidation prices. Stay tuned for the latest updates.