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Celsius to undergo bankruptcy proceedings, CEO steps down

Yahoo Finance's David Hollerith breaks down the latest in crypto markets as bitcoin stagnates and the Celsius CEO steps down.

Video Transcript

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AKIKO FUJITA: Another rough quarter for crypto as the crypto winter wears on. Bitcoin currently trading above that $20,000 level. Still well below its record highs of $70,000 from last November. We're joined by Yahoo! Finance's David Hollerith, who has a wrap on the quarter. How should we characterize this quarter, David?

DAVID HOLLERITH: Yeah. Well, you know, it-- yeah, it can be read a lot of different ways. The thing to know is, obviously, cryptocurrencies are down, you know, more than half below where they traded last year. But actually, in the last three months, they're up about, I would say, 5% to 6%. It's a range.

But in general, for cryptocurrencies, that seems kind of like a net flat. In my opinion, at least. And it's kind of interesting.

And what that tells me is that cryptocurrency took its blows in Q2. Most of the asset class or the total market cap, which is sort of an aggregation of that, dropped by 57%. And since then, you know, there's been a lot less trading volumes, which, obviously, is not as good for these trading venues. But in general, it seems like both sellers and buyers have sort of exited the market for now.

AKIKO FUJITA: And you could argue that in many ways, crypto assets have moved in tandem with sort of the riskiest asset-- riskiest equities, right? So some would argue, well, the macro headwinds naturally just kind of got the entire crypto space caught up there as well.

I know you're also following some developments out of Celsius. The company undergoing bankruptcy proceedings. What's the very latest on that front?

DAVID HOLLERITH: Yeah, so the latest I've seen is that there's a company known as Equities First, which former CEO who resigned earlier this week, Alex Mashinsky, has suggested that Celsius has borrowed money, about $439 million, from this company called Celsius First.

And they have not yet returned the collateral, even though the loan has been paid down. So there's a group of account holders, who are sort of trying to figure out what's going on there. And they're trying to subpoena the company, essentially.

But added to that, Celsius has an auction coming up and an auction for their assets, like what we saw with Voyager that was sort of concluded last week, we know will include FTX, who bought Voyager's assets, and Wave Financial, who was also involved in the bidding process. So that's gonna be an interesting thing to watch in terms of-- yeah.

AKIKO FUJITA: How long is it likely to, I mean, play out? What's the knock on effect we're likely to see?

DAVID HOLLERITH: Yeah, I think it's likely to play out over November. By early November, we'll see it. Things can change based on gerrymandering the auction, you know, jockeying I guess, is the right word. But that's what we're looking at.

AKIKO FUJITA: OK. David, good to have you back in studio. David Hollerith there joining us.