According to BlockBeats, the U.S. Bankruptcy Court for the Southern District of New York has approved Celsius and its affiliated debtor "MiningCo Transaction" as part of Chapter 11 bankruptcy proceedings. The order issued by Chief Judge Martin Glenn is a key turning point in Celsius's restructuring efforts, and the court also rejected all objections to the proposal.

The court’s decision paves the way for Celsius to proceed with a transaction designed to stabilize and restructure the company’s operations, which involves the formation of a “public company focused on bitcoin mining.” The MiningCo Transaction includes a $225 million cash capitalization of the new entity (NewCo) and the transfer of certain mining assets to NewCo, excluding Core Rhodium, Mawson and Luxor assets.

The Court also approved the "Liquidation Budget and Procedures," which are essential to the orderly execution of the Plan. The Liquidation Budget outlines major expenses, including administrative expenses, professional fees, and operating expenses, totaling approximately $70 million. These expenses are essential to support the distribution of asset sales and the management of the estate.