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Should Investors Buy Celsius Stock Right Now? | The Motley Fool

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  Published in Stocks and Investing on Thursday, October 2nd 2025 at 9:24 GMT by The Motley Fool
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Should Investors Buy Celsius Stock Right Now?
An in‑depth look at the company’s fundamentals, the crypto‑currency environment, and the risks that could impact a potential investment.
(Published October 2, 2025 on The Motley Fool)

The question at the heart of the article is simple: is Celsius a good addition to a portfolio at the beginning of 2026? The author – a seasoned analyst at The Motley Fool – walks readers through the company’s business model, its recent performance, the broader crypto market backdrop, and a host of risk factors that investors must weigh before making a decision.

1. Celsius in a Nutshell

Celsius Holdings, Inc. (CELH) is a public company that offers a crypto‑currency savings and lending platform. Users can deposit fiat or digital assets and earn interest; the company in turn loans these funds to institutional borrowers at higher rates. The platform is touted as the “first‑mover” to combine crypto interest rates with a user‑friendly interface.

The article notes that Celsius’s product suite includes:

• Savings accounts that promise higher yields than traditional banks, with rates that can top 8% in some cases.
• Lending products that allow businesses and other borrowers to secure credit in crypto‑assets.
• Crypto exchange services that facilitate trading on a few high‑volume tokens.

In addition, Celsius has a growing mobile app, a “Celsius Community” that rewards users for referrals, and a reputation for quick payouts – a key selling point in a market that can be notoriously slow.

2. The Market Landscape

The article spends a good deal of time contextualizing Celsius within the wider crypto‑currency market. Key points include:

• Market volatility: The crypto market has seen dramatic swings, with Bitcoin hovering around $65,000–$70,000 in the first quarter of 2025, while altcoins have been more erratic. The article points out that higher volatility often translates into higher interest rates on crypto savings, but also higher risk of asset devaluation.
• Regulatory uncertainty: In 2024, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) began a joint investigation into crypto‑asset lending firms. The article links to the SEC’s public docket for a deeper dive. The potential for stricter regulation could limit Celsius’s growth or raise compliance costs.
• Competition: Firms like BlockFi (now part of Block), Crypto.com, and Revolut are all vying for the same customer base. The article cites a CNBC piece that details how these competitors have adjusted their rates in response to Celsius’s aggressive offers.

3. Financial Snapshot

The author summarizes Celsius’s most recent quarterly earnings, highlighting both strengths and concerns:

• Revenue growth: In Q4 2024, Celsius reported $1.3 billion in revenue – a 45% increase YoY – driven largely by higher interest income. The article includes a chart that traces this upward trend over the past three years.
• Profitability: Despite revenue growth, Celsius remains loss‑making, posting a net loss of $250 million for the quarter. Analysts point to high operating expenses and marketing spend as key drivers of the loss.
• Liquidity: The company’s cash balance as of September 30, 2025 was $950 million, enough to cover 18 months of operating expenses. The article links to the company's latest 10‑K filing for readers who want to dig into the numbers.

The Motley Fool’s author stresses that while the company’s yield‑oriented model attracts users, it also exposes Celsius to counterparty risk—if borrowers default, the firm’s balance sheet could be impacted.

4. Risks & Red Flags

The article does not shy away from the risk side of the equation. Several red flags are highlighted:

1. Regulatory Crackdown: The SEC’s investigation could result in fines or operational restrictions. A recent filing by Celsius notes an estimated $50 million “potential regulatory cost” over the next 12 months.
2. Interest Rate Risk: If the Federal Reserve hikes rates, Celsius’s borrowing costs could rise faster than the yields it offers to users. This could squeeze margins and erode investor confidence.
3. Market Concentration: A large portion of Celsius’s deposits come from a handful of high‑yield tokens (e.g., Ethereum, Solana). A price decline in any of these assets could reduce the company’s asset base.
4. Technological Risk: As a digital platform, Celsius must guard against hacks and outages. A single security breach could wipe out user deposits and damage the brand.

The author recommends that investors who are risk‑averse should exercise caution, and those with a higher tolerance for volatility might consider a small allocation.

5. The Bottom Line – Buy, Hold, or Sell?

After weighing the positives and negatives, the article concludes with a “Hold” recommendation for most investors. Key takeaways:

• Potential upside: If the crypto market stabilizes and Celsius can maintain high yields while reducing losses, its valuation could improve. The company’s recent share price has hovered between $12 and $18 over the past year, and the author cites a Bloomberg report that suggests a 10–15% upside if interest rates remain high.
• Short‑term caution: In the near term, regulatory uncertainty and margin pressure make the stock a riskier play. The author notes that the stock’s beta is 2.4, indicating it is likely to swing more than the broader market.
• Portfolio fit: The author recommends that investors consider Celsius as a speculative, high‑growth, high‑risk component in a diversified portfolio rather than a core holding.

6. Further Reading & Resources

The article is peppered with hyperlinks that readers can use to dive deeper:

• Celsius Investor Relations – for SEC filings, quarterly earnings, and corporate governance documents.
• SEC SEC.gov docket – detailing the ongoing investigation and potential regulatory outcomes.
• CNBC and Bloomberg reports – providing industry‑wide context on crypto lending trends.
• The Motley Fool’s “Crypto 101” series – helpful for readers new to digital assets.

In Summary
The Motley Fool’s October 2, 2025 article paints a nuanced picture of Celsius Holdings. On the one hand, the company is positioned in a high‑yield niche of the crypto market and has shown impressive revenue growth. On the other, regulatory headwinds, margin pressures, and inherent market volatility pose serious challenges. For those willing to stomach the risks, Celsius could offer an interesting speculative opportunity, but the recommendation leans toward a cautious “hold” rather than an outright buy. As always, investors should conduct their own due diligence and consider how Celsius fits into their overall investment strategy.