Celsius & Updates: Selling Our Shares, Tether Lawsuit, & Submitting Victim Impact Statement

Summary

In this video, Aaron provides a detailed update on Ionic Digital's recent changes, including the appointment of a new interim CEO and the completion of key facilities. He highlights significant financial updates, such as the company's Bitcoin holdings and recent miner purchases. Additionally, he discusses the ongoing legal battle between Celsius and Tether, with Celsius seeking to recover $2.3 billion. Aaron also touches on the importance of shareholder involvement and provides a recommendation for Aura, a personal security app. Stay tuned for future updates as the situation unfolds.

Takeaways

• 😀 Ionic Digital has appointed Anthony McKernan as the interim CEO to lead the company through significant operational changes aimed at increasing competitiveness in Bitcoin mining and maximizing shareholder value.
• 😀 The company has undergone a major overhaul of prior practices, signaling an attempt to improve its operations, but also raising concerns about past management.
• 😀 Ionic Digital plans to complete a financial audit by the end of Q2 this year, which is key to enabling a liquidity event, i.e., the ability to buy, sell, or trade assets.
• 😀 Construction on Ionic Digital's Building 3 at the Cedar Veil facility is complete and the building will be energized this week, contributing to the company’s operations.
• 😀 The company recently purchased 15,000 miners at advantageous rates, which are expected to generate positive cash flow within three months, while helping fill remaining shelf capacity and replace older equipment.
• 😀 Ionic Digital holds approximately 2,461 Bitcoin in treasury, and as of December 2024, mined a total of 1,185.14 Bitcoin during the year.
• 😀 The company will begin publishing monthly key operating metrics for shareholders on their website to keep them informed about its performance and progress.
• 😀 Mike Kagney, a prominent shareholder advocate, emphasizes that shareholders are frustrated by the company’s lack of liquidity and poor stock performance. He advocates for change in the upcoming February shareholder meeting.
• 😀 Tether is currently trying to dismiss the lawsuit filed by Celsius, which seeks to claw back 39,500 Bitcoin (worth approximately $2.3 billion) related to a loan collateral liquidation during Celsius' bankruptcy.
• 😀 Tether claims the court lacks jurisdiction over them, as they are a foreign entity with limited U.S. connections. They also argue that they liquidated Celsius' collateral in accordance with the loan terms and that Celsius' insolvency justified the liquidation.
• 😀 Celsius creditors may potentially see financial recovery if the Tether lawsuit is successful, but there is uncertainty whether a settlement or long legal battle will be the outcome, with the hope that any returned funds will go to creditors.

Q & A

What significant changes did Ionic Digital make in December?

Ionic Digital undertook significant changes to certain prior practices and overhauled its operations to compete more effectively in Bitcoin mining and maximize long-term shareholder value.

Who is the new interim CEO of Ionic Digital, and what is his focus?

The new interim CEO of Ionic Digital is Anthony McKernan, and his focus is on completing the financial audit by the end of the second quarter and improving liquidity, along with strategic changes in operations.

What progress has Ionic Digital made in terms of mining equipment?

Ionic Digital purchased 15,000 miners in the last two weeks of December at advantageous rates, which they anticipate will turn cash flow positive in three months and fill remaining shelf capacity.

What financial information did Ionic Digital provide in their latest update?

As of the update, Ionic Digital holds 2,461 Bitcoin in treasury. In December, the company mined 161.5 Bitcoin and had an average realized hash rate of 8,563 terahashes per second.

What does Mike Kagney suggest about the value of Bitcoin compared to Ionic shares?

Mike Kagney argues that if shareholders had received cash instead of Ionic shares, they would be up over 150% by now, due to the rise in Bitcoin value.

What is the significance of the shareholder meeting in February?

The shareholder meeting in February is crucial as Ionic Digital plans to vote on a new board slate, with many shareholders, including large ones, supporting a change in leadership.

What is the status of Alex Mashinsky's sentencing?

Alex Mashinsky has pled guilty to various charges and is scheduled to be sentenced on April 8, 2025. Victims can submit statements to the U.S. Attorney’s Office before March 21, 2025.

How does the lawsuit between Celsius and Tether relate to Celsius' bankruptcy?

Celsius is suing Tether to recover 39,500 Bitcoin, claiming that Tether improperly liquidated their collateral during the bankruptcy, resulting in Tether receiving more money than other creditors.

What is Tether's defense against the lawsuit from Celsius?

Tether claims that the court lacks jurisdiction over them, as they are foreign entities with limited U.S. connections. They also assert that the liquidation was in accordance with the loan terms and Celsius' insolvency triggered it.

What is the potential outcome if the Celsius-Tether lawsuit results in a settlement?

If the lawsuit results in a settlement, the proceeds would flow back to Celsius creditors, potentially recovering significant funds, which could exceed the original claims made by creditors, especially given the rise in Bitcoin's value.