Simon Dixon Believes that Price Hike in BTC and ETH Could Settle Celsius Claims

If Bitcoin (BTC) and Ether (ETH) prices doubled, Celsius, the bankrupt crypto lender, has a viable shot at settling billions in outstanding claims, says Simon Dixon, founder of the crypto investment firm Bank of the Future. 

Simon Dixon projected this intriguing possibility through a tweet shared on July 19th.

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According to Dixon, if Bitcoin hits a price point of $54,879 and Ether soars to $3,750, the resulting price appreciation could enable Celsius to settle all its debts and retain its other assets.

It is worth noting that in June, Celsius requested the court to allow it to covert all of its crypto assets to Bitcoin and Ether.

Such optimistic forecasts were formed despite the Bank of the Future’s lack of access to privileged insider information. It instead had to rely on what Dixon terms "imperfect knowledge."

In his tweet, Dixon detailed the company's new restructuring blueprint under Fahrenheit that incorporates mining, institutional loans, and investments valued at around $1.4 billion and liquid crypto worth $450 million.

Dixon also elaborated on a comparative study between the recovery strategies of Fahrenheit and the Blockchain Recovery Investment Consortium (BRIC). Although total recovery under the orderly wind-down outstrips the available assets, with figures standing at $3.519 billion and $3.417 billion, respectively, the difference is offset by the variable cost.

The report reveals an estimated recovery return of around $339 million. According to the Bank of the Future's calculations, the recovery under both plans should be approximately 65%.

It also estimates a potential rise to about 75% if 10% of claims go unclaimed. Notably, the Fahrenheit plan's recovery constitutes 41.4% equity and 58.6% in liquid crypto. In contrast, the BRIC orderly wind-down recovery plan comprises 12.4% equity and 87.6% in liquid crypto.

Dixon strongly recommends creditors strive to resolve the bankruptcy proceedings before Bitcoin and Ether values reach the predicted figures or before 2023 ends. Dixon highlighted that the crypto community must avoid "another rug pull, we will need to fight hard against it if it comes up."