According to CryptoSlate, the United States Southern District of New York Bankruptcy Court has approved Celsius and its affiliated debtors "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 continue its efforts to stabilize and restructure its operations, which involves creating a "public company focused on bitcoin mining." MiningCo Transaction includes a cash capitalization of $225 million for the new entity (NewCo) and the transfer of certain mining assets to NewCo, excluding Core Rhodium, Mawson, and Luxor assets.

In addition, the court approved modifications to the management agreement, setting the initial term at four years with specific conditions for extension or early termination. It is worth noting that if NewCo's mining capacity does not reach the specified 23 EH/s Exahash target within the first three years, NewCo has the right to terminate the agreement without paying an early termination fee, provided that a six-month transition period is given.

The court also approved a "liquidation budget and procedure," which is crucial for the planned orderly execution. The liquidation budget outlines major expenses, including administrative, professional, and operational expenses, totaling approximately $70 million. These expenses are essential to support the distribution of asset sales and management of the property.

In addition, the court addressed the issue of the Securities and Exchange Commission (SEC) and the rights related to cryptocurrency tokens. The order explicitly states that the court's decision should not be construed as a determination of the status of cryptocurrency tokens or transactions involving them under federal securities laws. This provision preserves the SEC's power to object to transactions involving cryptocurrency tokens.

This approval marks a shift towards orderly liquidation, aimed at providing better results for creditors, albeit different from the original plan. The decision was made after weighing various opinions, including objections and support statements, reflecting the court's focus on fair and legal resolution of issues.