Bitcoin Mining Firm Ionic Faces Potential Liquidation as Creditors Contemplate Removal of Board

Bitcoin mining firm Ionic Digital Inc., co-owned by former Celsius Network customers, is under scrutiny as some creditors contemplate liquidation

Bitcoin mining firm Ionic Digital Inc (NASDAQ:IONC) , partly owned by former Celsius Network customers, has come under the scanner as some creditors mull liquidation over management concerns and financial challenges. Initially meant to serve as compensation for former Celsius users, Ionic has faced setbacks in its plans to go public, leading to dissatisfaction among its shareholders.

Bitcoin Mining Firm Ionic Faces Potential Liquidation

Some former Celsius Network customers, now creditors of Ionic Digital Inc, are exploring the option to liquidate the Bitcoin mining firm. This development comes amid delays in Ionic’s plan to list on the Nasdaq Stock Exchange.

Disruptions, including the resignation of Ionic’s auditor RSM US in May and the departure of CEO Matt Prusak earlier this month, have escalated shareholder concerns over the capability of the current board to steer the company. Consequently, some creditors are aiming to remove the present board of directors.

During a court hearing, Joseph Sarachek, a lawyer representing a group of Celsius creditors, said that several shareholders expressed interest in forcing a liquidation of Ionic’s assets. The delay in Ionic’s public listing, which was expected to take place in 2023 but is now anticipated to occur sometime in 2025, has aggravated these concerns.

Ionic Financial Status & Response To Shareholder Concerns

In response to the potential liquidation, Gregory Pesce, a lawyer for Ionic, maintained in court that the company is financially stable. He highlighted Ionic’s positive cash flow and holdings of approximately $200 million in cash and cryptocurrency.

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