Simon Dixon Outlines Personal Celsius Recovery Strategy

Simon Dixon, CEO of Bank to the Future, outlined his personal strategy for recovering losses from the Celsius bankruptcy in a recent video presentation.

Disclosure: Everything in this article is our (TheDroidGuy’s) interpretation of what Simon Dixon MAY be suggesting. You must make your own interpretation by watching his video to make your own conclusion. We are not making any recommendations. Everything written in this article is for informational purposes only. Please do your own research and make your own conclusions. Do NOT make any financial decisions based on this article.

Key Points

• Dixon plans to convert all crypto distributions to ETH for staking to try and recover more Bitcoin long-term
• He will hold the NUCO equity and track Bitcoin mining company valuations during the next Bitcoin halving cycle
• Dixon will convert all litigation proceeds paid out in dollars into Bitcoin when received
• His goal is to try and replace his lost Bitcoin through higher risk strategies than just holding Bitcoin

Simon Dixon, CEO of the cryptocurrency investment platform Bank to the Future, outlined his personal strategy for recovering losses from the Celsius Network bankruptcy in a detailed video presentation on September 1st, 2023.

Dixon was both a creditor and shareholder of Celsius, having deposited crypto on the platform as well as investing in the company in 2020. After outlining his philosophical approach and main goal of trying to replace his lost Bitcoin long-term through higher risk strategies, Dixon covered the key components of his recovery plan:

Crypto Distributions

• Dixon plans to convert any Bitcoin distributions into Ethereum when received and run validator nodes to earn staking rewards
• By staking and compounding Ethereum, he believes there is potential for greater returns than just holding Bitcoin in the current market environment
• Once his Ethereum holdings hit his target for replacing his lost Bitcoin amount, Dixon will convert the excess ETH back into Bitcoin

NUCO Equity

• Dixon will retain the NUCO equity granted to creditors in the reorganization plan
• He will monitor the valuations of publicly traded Bitcoin mining companies heading into the 2024 Bitcoin halving cycle
• If NUCO trades at a discount to assets held, Dixon sees an arbitrage opportunity

Litigation Proceeds

• As litigation proceeds against Celsius insiders and others, any dollar distributions will be immediately converted to Bitcoin
• Dixon has a mechanism to efficiently convert proceeds to Bitcoin when received

Goal

• Dixon’s goal is to try and replace his lost Bitcoin through higher risk strategies than just holding the distributed crypto
• He is focused on recovering the amount of Bitcoin lost, not the dollar value which he sees as an illusion

After outlining his philosophy and approach in the first video, Dixon covered the details of his plan:

Overview of Dixon’s Celsius Recovery Strategy

Dixon started by reiterating that his situation is unique, as the lost funds represented risk capital that will not materially impact him. He recognizes most creditors have lost significant personal savings, and his higher risk strategy may not suit their personal situations.

Defining His Goal

Dixon’s primary goal is to recover the amount of Bitcoin lost in Celsius, not the equivalent dollar value. He plans to track if his strategy results in replacing his missing Bitcoin over a 1-2 year timeframe.

Four Potential Recovery Sources

Dixon outlined four potential sources of recovery:

1. Criminality settlements – Celsius insiders bearing costs, not creditors
2. Crypto distributions – Converting all crypto to ETH for staking
3. NUCO equity – Monitoring mining company valuations around 2024 halving
4. Litigation proceeds – Converting dollars distributed to Bitcoin

Crypto Distribution Strategy

Despite being a Bitcoin maximalist, Dixon plans to convert all his crypto distribution to Ethereum to earn staking yields. His belief is that in a bear market, Ethereum will likely outperform Bitcoin but lag in a bull run.

By staking and compounding Ethereum, Dixon sees a path to potentially recovering more of his Bitcoin long-term compared to just holding the distributed crypto. Once his Ethereum holdings surpass the Bitcoin amount lost, he will convert the excess back into Bitcoin.

Dixon expects the initial crypto distribution to be approximately 25% of his lost Bitcoin based on estimates, but there are many variables still in flux.

NUCO Equity Strategy

Dixon will retain his NUCO equity granted in exchange for some of the crypto distribution. He believes holding the equity long-term provides upside through exposure to Bitcoin mining and staking assets.

By monitoring public Bitcoin mining companies, Dixon will track potential arbitrage opportunities if NUCO trades at a discount to its asset holdings. He plans to hold through the 2024 halving cycle before re-evaluating.

Governance Controls and Bitcoin Strategy

Dixon stressed that he will not commit to his NUCO equity strategy until seeing the governance terms and controls put in place for management decision making. He wants to see guarantees that underperforming management can be removed quickly.

As litigation proceeds pay out over time, Dixon will use the dollars distributed to purchase Bitcoin in an efficient manner using custodial services. Recovering additional Bitcoin through litigation is a key part of his overall plan.

Simon Dixon Celsius Recovery Strategy

In summary, Simon Dixon outlined a strategy of taking more risk than just holding crypto distributed in an effort to recover his lost Bitcoin. By staking Ethereum, holding NUCO equity long-term, and converting litigation dollars into Bitcoin, Dixon aims to utilize higher risk strategies with the potential for greater returns to replace his missing coins.

The most important factor Dixon stressed is defining a clear recovery goal, whether in Bitcoin, US dollars, or other assets. He advised creditors to consult tax professionals and determine their own risk tolerance before deciding on a bankruptcy claim strategy.

Dixon will provide updates on his evolving Celsius recovery plan over the coming weeks leading up to the bankruptcy reorganization vote deadline on September 22, 2023.