Fahrenheit Wins Celsius Bankruptcy Bid, Acquires Loans, Pledge Portfolio, and Mining Unit

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Bidding Results for Celsius Assets Announced

According to CoinDesk , the latest court documents show that the Fahrenheit consortium won the bid for the assets of Celsius Network. The consortium will acquire Celsius’s institutional loan portfolio, collateralized cryptocurrencies, mining arm and other alternative investments, and must pay a $10 million deposit within three days to finalize the deal, according to the filing.

The blockchain recovery investment alliance, including Van Eck Absolute Return Advisers Corporation and GXD Labs LLC, was selected as a candidate. In addition, NovaWulf, which was once considered to have a high probability of winning the bid, lost the bid.

Under the terms of the deal, the new company will receive between $450 million and $500 million worth of cryptocurrency assets, while US Bitcoin Corp will also build a series of cryptocurrency mining facilities, including a new 100-megawatt power plant.

However, although Celsius and its committee of creditors accepted the bid, it still needs regulatory approval to complete the final acquisition.

Where is the Fahrenheit Consortium?

The Fahrenheit consortium is a limited liability company formed by a number of institutions and investors. It can be seen from the name that it was specially formed to participate in the bidding of Celsius assets (Celsius is Celsius, Fahrenheit is Fahrenheit). Backers of the Fahrenheit consortium include: Arrington Capital, US Data Mining Group, Inc. (also known as US Bitcoin Corp.), investment firm Proof Group Capital Management, former Algogrand CEO Steven Kokinos and banker Ravi Kaza.

Michael Arrington, founder of Arrington Capital, emphasized on Twitter last month that the consortium's bid was not a simple asset purchase:

“We propose to place these assets into a new company that will operate with the sole goal of increasing these assets to keep stakeholders intact.”

3/ What has happened to the stakeholders of Celsius is an absolute tragedy and has affected the entire industry. We want to help put the pieces back together and will work tirelessly to do this.

— Michael Arrington 🏴‍☠️ 🛡️ (@arrington) April 22, 2023

Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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