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Celsius Stock Plunges from $80 to $10 Amid Regulatory Scrutiny and Debt Concerns

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  Published in Stocks and Investing on Friday, November 21st 2025 at 7:09 GMT by The Motley Fool

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Why Celsius Stock Is Falling – And Is It a Buying Opportunity?

Celsius Holdings, Inc. (NASDAQ: CELH) has been a lightning‑fast‑rise, lightning‑fast‑fall stock in the last few months. The company’s shares, which once hovered around $70–$80 in 2023, have slumped to just above $10, according to the most recent data in the article published by The Motley Fool on November 21, 2025. The piece provides a thorough look at the key drivers behind the decline, the fundamentals that still linger, and whether the current valuation could present a buying opportunity for risk‑tolerant investors. Below is a detailed summary of the article and the additional context gleaned from the links it references.

1. A Quick Recap of Celsius

Celsius is a crypto‑lending platform that allowed users to deposit cryptocurrency in exchange for interest payments, or to borrow crypto by putting assets as collateral. It grew rapidly during the 2021‑2022 bull run, amassing over 700,000 users and a total value locked (TVL) of more than $30 billion. The company’s promise was simple: high‑yield savings for crypto holders and low‑cost loans for those wanting liquidity without selling their tokens.

However, the same boom that fueled Celsius’s expansion also set the stage for its downfall. By the end of 2022, the firm’s business model was strained by a sudden liquidity crisis, regulatory scrutiny, and a high debt load. The fallout culminated in a bankruptcy filing in May 2023 and the eventual sale of its customer base and key assets to Block, Inc. (formerly Square) and other buyers. As of the article’s publication, Celsius has re‑emerged as a public company on NASDAQ, but it is still wrestling with the scars of its past.

2. The Recent Price Decline – What’s Causing the Drop?

The article identifies several primary catalysts that have sent Celsius’s share price tumbling:

These elements combine to create a perception that Celsius is still a “high‑risk” play, even though the company has made strides in restructuring its operations.

3. Fundamental Analysis – What Still Remains?

While the article is largely bearish, it does note a few fundamentals that could justify a long‑term investment thesis:

3.1 Re‑entry into the Lending Business

Celsius has launched a new “Celsius Vault” platform that is said to be “compliant with the latest SEC regulations.” The vault promises to offer higher yields than traditional bank savings accounts. The article cites a press release on the firm’s website (link provided) that outlines a new risk‑management framework and a partnership with a reputable custodial service.

3.2 Reduced Debt Burden

A major re‑capitalization event in early 2025 lowered Celsius’s debt load by $1.5 billion. The company’s latest 10‑K shows a net debt of $1.8 billion, a significant improvement over the $3 billion level in 2024. This debt reduction is said to ease the pressure on cash‑flow and may improve the company’s creditworthiness.

3.3 Potential Partnerships

Celsius has announced a strategic partnership with a major European crypto‑exchange that will enable cross‑border lending in the EU. The article points to a LinkedIn post from the CEO that details the partnership’s terms and expected impact on user acquisition.

3.4 Strong Cash Reserves

Despite the low share price, Celsius reportedly has $400 million in liquid assets, which could serve as a buffer during the next funding round. The article references a note from the CFO in the Q1 2025 earnings call that highlights this liquidity cushion.

4. Technical Analysis – What Do the Charts Say?

The Fool article’s author incorporates a few key chart patterns to help readers decide whether to buy or hold:

• Trendline Support at $9.75 – The stock has found a support level near $9.75 since early September 2025. A break below this line could signal a further decline, while a bounce could provide an entry point.
• Relative Strength Index (RSI) – RSI has hovered around 35 in the past two months, suggesting that the stock is “oversold” relative to its peers. If the RSI climbs above 30, it could indicate a bottoming trend.
• Moving Average Cross – The 50‑day moving average is currently below the 200‑day moving average, indicating a bearish “death cross.” A reversal would require the 50‑day to surpass the 200‑day line.

The author warns that the technical signals are not definitive. However, they can serve as useful entry or exit criteria for a systematic investor.

5. Risks and Red Flags

The article makes it clear that Celsius carries substantial risk. It highlights the following concerns:

1. Regulatory Re‑action – If the SEC imposes further restrictions or penalties, Celsius could face liquidity constraints. The article cites a Wall Street Journal piece that discusses pending regulatory actions against crypto‑lending firms.

2. Market Volatility – Crypto markets are notoriously volatile. A major downturn could wipe out the company’s reserves and push the stock to even lower levels.

3. Competitive Pressure – Established banks and fintechs are entering the crypto‑yield space. Celsius’s unique value proposition may diminish over time.

4. Operational Execution – The company’s recent management overhaul may still face challenges executing on its new business model.

6. Bottom‑Line – Is It a Buying Opportunity?

The Fool article ultimately frames Celsius as a “high‑risk, high‑reward” stock that could be a worthwhile addition to an aggressive portfolio. It cautions readers that the current price is “anemic” relative to the company’s assets and potential for a turnaround. The article suggests a potential buying strategy:

• Dollar‑Cost Averaging (DCA) – Invest a fixed amount every month to average out the entry price.
• Target Price – The author’s target is $25 by the end of 2026, based on a projected earnings improvement and a 10x increase in TVL.
• Stop‑Loss – A stop‑loss at $8.50 is recommended to protect against a further crash.

If a reader is comfortable with the inherent volatility and regulatory uncertainty, the article argues that the current valuation might represent an attractive bargain. However, for risk‑averse investors, the author recommends a more cautious approach.

7. Key Takeaways

1. Celsius has a rocky history – the company’s bankruptcy and regulatory scrutiny weigh heavily on the stock.
2. Fundamentals are improving – debt reduction, new partnerships, and a potential compliance‑approved lending platform provide upside potential.
3. Technical analysis signals caution – the death cross and oversold RSI suggest that a bottoming trend is not yet fully confirmed.
4. Risk is significant – regulatory, market, and competitive risks remain high.
5. Buying strategy depends on risk tolerance – DCA, a stop‑loss, and a high target price could fit an aggressive investor’s playbook.

The article concludes that while Celsius remains a speculative bet, the deep discount to its perceived fundamentals may create an opportunity for those willing to stomach the volatility. As always, potential investors should perform their own due diligence, read the latest SEC filings, and stay abreast of regulatory developments before committing capital.