Celsius Network, interest-bearing and crypto-lending decentralized finance (DeFi), will soon be acquired by the most bidding participant in the auction round, which will be held on April 25, 2023. According to court filings, Coinbase and Gemini filed their nomination to participate in the auction to acquire the bankrupt Celsius Network.
The U.S.-based company had almost $167 million in cash to resolve problems of liquidity to back certain operations during the restructuring process. Also, the entity accounted for total assets and liabilities between $1bn to $10bn.
Besides Coinbase and Gemini Fahrenheit, the venture capital is backed by Arrington Capital which Michael Arrington owns. Proof Group Capital Management will also join the auction event. In September 2022, Centerview Partners LLC, Celsius’s investment banker, began marketing to identify potential bidders for Celsius’s assets. In consultation with Centerview, Celsius contacted over 130 parties they believed may be interested in a transaction.
On December 28, 2022, The Wall Street Journal reported, “Hundreds of FTX, Voyager, and Celsius customers are parting with their accounts, selling for pennies on the dollar to deep-pocketed investment firms. Some crypto customers with their accounts stuck in failed cryptocurrency companies are now taking a big loss on their investments to avoid dealing with uncertainties in drawn-out bankruptcies.”
According to Fortune, Michael Arrington noted, “Coinbase was one of the companies backing Fahrenheit consortium in his Tweet Dated April 22.” Coinbase did not confirm any of the statements made by Arrington.
The Blockchain Recovery Investment Committee, backed by Gemini, owned by the Winklevoss brothers, Fund manager VanEck, Global X Digital (Bitcoin Mining Firm), and Plutus lending protocol, are among the second group participants of the Celsius bidding event.
In his April 23, 2023, Twitter post, Arrington wrote, “The new company will own substantial Bitcoin mining assets, retail and institutional loans, various crypto core assets, and a venture capital portfolio. We have assembled a group of proven crypto operators to run this business.”
The auction event of Celsius is a golden chance after the collapse of the lending platform in July 2022. The company filed for bankruptcy two months after Terra’s Failure.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/04/24/gemini-and-coinbase-will-participate-in-celsius-network-auction/