Fahrenheit Wins Auction To Acquire Insolvent Celsius Network Assets

• The Blockchain Recovery Investment Consortium has also been kept as a backup offer.
• Fahrenheit will provide the funds, management, and technology necessary for new firm.

On May 25th, insolvent cryptocurrency lender Celsius Network announced that the auction to sell its assets to cryptocurrency consortium Fahrenheit LLC had concluded.

After consulting with its official committee of unsecured creditors. Celsius Network ultimately decided to go with Fahrenheit as the high bidder in the court-supervised auction. The Fahrenheit Group is made up of Steven Kokinos, Ravi Kaza, and Arrington Capital, as well as US Bitcoin Corp and Arrington Capital.

Launch of New Firm

Moreover, Fahrenheit will provide the funds, management, and technology necessary to launch a new firm in accordance with the Chapter 11 plan, the company said in a statement. One of Celsius’s top creditors, Simon Dixon, said on Twitter that Celsius’s new entity’s assets, estimated at $2 billion, will be acquired by and managed by Fahrenheit.

The strategy calls for NewCo to handle the management of Celsius’ illiquid assets. And also the distribution of liquid cryptocurrency to account holders. According to the most recent court filing. The group would acquire the institutional loan portfolio, mining subsidiaries, and other alternative assets now held by Celsius.

Assuming no secondary market transactions diminish the amount, Fahrenheit will get $500 million in liquid cryptocurrency. In order to go on with plans to construct and energize 100 MW bitcoin mining facilities. The business must satisfy the outstanding criteria within the next few weeks.

The Blockchain Recovery Investment Consortium has also been obtained as a backup offer for the firm. As a result, Celsius’s creditors will have a leg up in starting a mining company.

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