According to court documents, Celsius expects its net cash flow to turn negative to the tune of $137.21 million in the three months ending in October.
Huge operating expenses, which add up to $85.37 million for the period, are the major contributor to the negative cash flow. Of this $85.37 million, the lender has allocated around $13.95 million toward paying employees till October. Another $57.27 million is dedicated to hosting expenses related to mining activities.
Additionally, the documents showed that Celsius also expects to spend around $33.48 million on restructuring activities alone by the end of October.
As a result of the decreasing cash flow, the lender’s liquidity at the end of August is expected to be around $66.39 million, according to the documents. However, by the end of October, the figure is expected to dwindle to a negative $33.92 million after sliding to $11.05 million in September.
In addition to the expenditure forecast, Celsius also filed a coin report detailing its crypto assets and liabilities. According to the document, Celsius received 100,669 Bitcoin (BTC) from its users as deposits as of July 29. However, the lender only owned 14,578 BTCs at the end of July, valued at around $348 million at current prices.
The document showed that the document showed that the lender’s total Bitcoin liabilities add up to 104,962 Bitcoins, worth around $2.5 billion. Celsius also owned $557 million worth of Wrapped Bitcoin (wBTC) as of July 29.
Similarly, Celsius’ total Ethereum (ETH) liabilities amount to 1,045,291 ETH, worth around $1.78 billion at current prices. But at the end of July, the company only owned less than half that number of Ethereum, valuing up to only around $713 million at current prices. According to the document, Celsius converted 410,514 Ethereum tokens to Lido staked Ethereum (stETH) — its stETH holdings are valued at around $683 million as of July 29.
It is important to note that at the time of writing, both wBTC and stETH were trading at a slight discount to Bitcoin and Ethereum, respectively.
Celsius also has a deficit in its USD Coin (USDC) holdings. The lender owes $944.84 million worth of USDC tokens while it owned only $278.75 million worth of USDC on July 29, the document showed.
But the lender has a large excess of CEL tokens with only $323 million in liabilities and $761 million in holdings.
The lender’s total token liabilities amounted to $6.67 billion at the end of July but its digital assets only amounted to $3.82 billion. This left a total deficit of $2.84 billion for Celsius.