Celsius Challenges Bankruptcy Status with Massive ETH Staking Move

Bankrupt crypto lender Celsius has reportedly resumed staking Ethereum (ETH) after withdrawing part of its staked ETH portfolio in April. The news was revealed by data shared by Arkham Intelligence, a reputable source in the cryptocurrency industry.

According to Arkham, Celsius staked an impressive 30,800 ETH, equivalent to approximately $56.9 million, through the staking solutions provider Figment in the past week. This report was supported by Tom Wan, a research analyst at 21Co, who confirmed the Arkham report and added that Celsius deposited over 40,000 Ethereum between May 10 and May 12 via Figment.

The motive behind this sudden deposit remains unknown, leaving industry experts puzzled. Previously, when Celsius withdrew a portion of its staked ETH in April, it was interpreted as a move to consolidate the company’s assets. The recent deposit seems contradictory to this interpretation and raises questions about the lender’s strategy in managing its cryptocurrency holdings.

Despite its bankruptcy status, Celsius still holds a substantial staked ETH portfolio, making it one of the largest firms in this space. As per the Arkham Intelligence dashboard, the lender currently possesses 410,378 staked ETH with an approximate value of $749.37 million. This sizable portfolio suggests that Celsius is still actively engaged in cryptocurrency staking, despite its financial difficulties.

Interestingly, Celsius’ decision to resume staking Ethereum comes at a time when other entities that previously withdrew their staked ETH are re-engaging in similar activities. Notably, the liquid staking derivatives protocol Lido has recently led the charts in terms of both withdrawals and deposits of staked ETH, according to data from Nansen’s dashboard.

The implications of Celsius’ latest move are yet to be fully understood. Some industry insiders speculate that the lender might be seeking to generate income through staking activities, even in its financially troubled state. Others remain cautious, noting that this action could be part of a broader restructuring plan or an attempt to protect its assets from potential losses.

As the situation continues to unfold, the cryptocurrency community eagerly awaits more clarity regarding Celsius’ motives and strategies. The crypto space is no stranger to unpredictability, and this development adds another layer of intrigue to an already dynamic industry.

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