During its first bankruptcy hearing on Monday, Celsius attorneys stated that it has half a million creditors owed more than $5 billion. Court documents, including a 61-page declaration from CEO Alex Mashinsky, as well as from the hearing itself indicate that much of Celsius’ plan to regain its losses depends heavily on the projected future profits of Celsius Mining, a half-finished, wholly-owned mining subsidiary.

But that mining subsidiary is also a debtor. Celsius’ lawyers requested the court on Monday to approve over $5 million in spending to finish the construction of the mining center in Texas (that according to them would take around two more months), and also pay duties on mining rigs that are currently sitting with the customs authorities.

Shara Cornell, an attorney with the U.S. Trustee Program, voiced her concerns over the viability of Celsius’ mining operation.

Cornell told the court that “There’s one mining company that I don’t believe is currently operable, but has caused the debtor a considerable amount of money. I’m not clear if construction may or may not be the best avenue for the debtor at this time. Why not just consider liquidating it and move on?”

Celsius’ attorneys repelled back and claimed that Celsius’ operation already included more than 43,000 mining rigs, with plans to reach 112,000 mining rigs “sometime in Q2 of 2023.”

Celsius’ lead attorney, Pat Nash, told the court that Celsius Mining was mining approximately 14.2 bitcoins per day and expected to mine 10,100 in 2022. He also added that “If everything goes well, in 2023 we hope and expect to be in a position to mine approximately 15,000 bitcoin a day.” This statement presumably meant 15,000 bitcoins in the entire year, as only roughly 900 total bitcoins can currently be mined per day.

Documents that were filed to the Southern District by the company’s law firm Kirkland & Ellis show that Celsius owes $4.7 billion to its customer, which is almost three times its $1.7 billion in digital assets. Even if Celsius meets their promises and is able to mine 10,100 this year, at the current market prices it would only yield approximately $225 million which is only a fraction of what is needed to make Celsius’ solvent.

Celsius’ second bankruptcy hearing will be held remotely on the morning of August 10. Currently, the U.S. Trustee is in the process of forming and appointing a committee of creditors. These committees, which are typically made up of the seven largest unsecured creditors of the debtor, will help oversee the bankruptcy proceedings, investigate the debtor’s conduct and business operations, and help the court formulate a reorganization plan for the company’s debt.