International cryptocurrency lenders, Celsius network has paid the total remaining amount of their Bitcoin loan of about $41.2 million reclaiming their $440 million collateral. The crypto lender paid off their loan in DAI, the stablecoin of Maker, one of the largest decentralized finance companies in the cryptocurrency ecosystem which Celsius were owing the $41.2 million balance.

The loan repayment activated the release of 21,962 wrapped bitcoin (WBTC which is the Bitcoin equivalent token of the Ethereum Blockchain). This 21,962 WBTC was pledged as the collateral towards the loan that was repaid on Thursday, hence the activation of its release. 21,962 WBTC was worth about $448 million as of the time of its release since it was trading at $20,400.

The complete loan repayment is a big boost for the beleaguered crypto lender as this positively impacts their finances. Celsius is one of the cryptocurrency companies that were close to insolvency because of crypto loans that became difficult to pay off with the sharp downtrend of the economic market.

Celsius had initially halted all economic activities on its platform including deposits and withdrawals on June 12 to avoid a run on deposits while the company was trying to sort out its financial problems.

Analysts speculate that the collateral that has now been freed up by the repayment of the loan should now be available on centralized exchanges or over-the-counter to meet the demands of creditors and customer withdrawals.

Celsius did not offer any further information or return any emails requesting comments on paying off the loan and the company’s plans for restructuring.

The news of the loan repayment was met with good news by the general cryptocurrency market as the price of CEL (Celsius’ native token) rose by 10% after news of the total repayment was released to the public. The price however is still down by 81% since the start of the year which is not surprising considering the current economic downturn.

Featured image source: Guia do Investidor