Skip to main content
Important: We do not provide financial advice or custody funds. All transactions occur on third-party platforms.
Back to news
marketmedium impact

Celsius Just Hit Nasdaq — But 37 Million Shares Are Locked Up. Here's Why Creditors Can't Cash Out Yet

4h ago · 1 source

Despite Celsius's post-bankruptcy entity making its debut on the Nasdaq exchange, approximately 37 million shares distributed to creditors are subject to lock-up restrictions that prevent immediate selling. The lock-up provisions are designed to prevent a massive sell-off that could crash the stock price right after listing, protecting both the market and the broader pool of creditors.

WHY IT MATTERS

Imagine you were owed money by a company that went bankrupt, and instead of getting cash back, you received shares of stock in the new version of that company. You'd probably want to sell those shares right away to get your money. But if everyone did that at the same time, the stock price would plummet and everyone would get less money. A 'lock-up period' is like a rule that says you have to wait a certain amount of time before you can sell your shares — it's like a line at a store that prevents a stampede. For Celsius creditors — many of whom are everyday people who lost their crypto savings when the platform froze withdrawals in 2022 — this means they have to be patient a bit longer before they can convert their shares into cash.

Read the full analysis with a CryptoBipto membership

Create a free account and subscribe to unlock deep-dive analysis on every story.

Get started

SOURCES

RELATED

CELCelsius BankruptcyLock-Up PeriodNasdaq ListingCreditor RecoveryPost-Bankruptcy Equity

Educational only — not financial advice.