NovaWulf will be Celsius Network's Bidder and Plan Sponsor

Recently, Celsius Network selected NovaWulf in a deal to restart its operations.
The crypto lender made an update in its recent court filing statement.

The bankrupt crypto lender Celsius Network yesterday informed that it has provided the Court with an update. According to the update, after running a comprehensive marketing process, Celsius Network has reached an agreement in principle with a plan sponsor, NovaWulf Digital Management, LP.

Since filing for Chapter 11, Celsius has been evaluating all options to maximize the value of their assets. Today, we provided the Court with an update.
— Celsius (@CelsiusNetwork) February 15, 2023

According to Celsius’s statement, over the last several months, Celsius Network and its advisors, in concert with the official committee of unsecured creditors and their advisors, have worked tirelessly in pursuing a dual-track process marketing of its retail platform and mining business while simultaneously developing a standalone reorganization.

In September 2022, Centerview Partners LLC, Celsius’s investment banker, began a marketing process designed to identify potential bidders for Celsius’s assets. Celsius, in consultation with Centerview, contacted over 130 parties they believed may be interested in a transaction.

As part of that process, Celsius executed over forty confidentiality agreements with prospective bidders, and such parties were granted access to a virtual data room populated with diligence materials to facilitate their assessment of the Assets. Parties that expressed interest in the Assets were also given the opportunity to discuss the business and technology with Celsius’ management team.

Celsius’ robust marketing process ultimately produced six non‑binding bids for their retail platform, three non‑binding bids for their mining business, and certain other bids for individual assets.

None of the bids for Celsius’ mining business were cash bids above liquidation value—all were preliminary and non‑binding, contingent on raising financing, structure, and would have significantly diluted creditors’ equity stake in the mining business.

After thoroughly analyzing each bid, Celsius’ marketing process came to a value‑maximizing conclusion—Celsius, in consultation with the Committee, reached an agreement in principle with a bidder and plan sponsor: NovaWulf Digital Management, LP.

The proposed NovaWulf transaction also provides the foundation for a potential settlement with respect to Celsius’ customer loan portfolio.

Celsius will also provide more detail on the proposed transaction at the February 15th, 2023, omnibus hearing.

Celsius also noted in the updated statement that it believes that the proposed agreement with NovaWulf reflects the highest and best offer that will maximize the value of its assets.

Over the coming days, Celsius and its advisors will work with the Committee and NovaWulf to finalize a binding agreement, at which point Celsius will cancel the Auction and designate NovaWulf as the Successful Bidder.

The results to‑date have been achieved in no small part due to Celsius’ extensive engagement with the Committee and other stakeholders. While much work remains to be done, Celsius is committed, now more than ever, to consummating the deal with NovaWulf as these chapter 11 cases transition to the confirmation process.

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