Beleaguered crypto lender Celsius Network on May 25 announced the completion of the auction process to transfer the assets to crypto consortium Fahrenheit LLC.
Celsius Network in consultation with its official committee of unsecured creditors selected Fahrenheit as the winning bidder in the court-approved auction process. Fahrenheit group consists of US Bitcoin Corp, Arrington Capital, Proof Group, Steven Kokinos, and Ravi Kaza.
Fahrenheit Group to Acquire Celsius Network Assets
According to an official announcement, Fahrenheit will provide the capital, management team, and technology required to successfully establish and operate a new company as per the bid pursuant to a Chapter 11 plan.
Simon Dixon, one of the largest creditors, took to Twitter to reveal that Fahrenheit won the bid to acquire Celsius’ assets valued at $2 billion and manage the new entity owned by Celsius creditors.
🍎 @FahrenheitHldg won, #BRIC is backup. It’s official. Term sheet included. I’ll cover more on my Space tonight #Celsius Creditors https://t.co/jrCiZ7rv2A 🙏 to all who participated. https://t.co/CSk93ui5Wa
— Simon Dixon (@SimonDixonTwitt) May 25, 2023
According to the plan, distributing Celsius’ liquid crypto to account holders, settlements with the Custody and Withhold groups, and manage Celsius’ illiquid assets by NewCo. The group will acquire Celsius’ institutional loan portfolio, mining subsidiaries, and other alternative investments.
David Barse and Alan Carr, members of the Special Committee of the Board, said:
“We appreciate the robust interest that the Celsius platform has received from competing bidders and look forward to working with Fahrenheit to expedite the restructuring and distribute recoveries to creditors.”
Fahrenheit will get $500 million in liquid cryptocurrency, which may get reduced to $450 million in case of secondary market purchases. The company needs to complete the pending requirement within weeks to proceed with plans to build and energize 100 MW bitcoin mining facilities.
In addition, the company has secured a backup bid with the Blockchain Recovery Investment Consortium. It will help create mining business in which Celsius creditors will receive 100% of the equity interests.
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Source: https://coingape.com/fahrenheit-wins-celsius-network-bid-new-company/