Crypto consortium Fahrenheit has emerged as the winning bidder in the auction to acquire the assets of bankrupt lender Celsius Network. The deal, valued at approximately $2 billion, includes Celsius's institutional loan portfolio, staked cryptocurrency, mining business, and alternative assets. Fahrenheit will pay a $10 million deposit within three days to finalize the agreement. The transaction is subject to regulatory approval. Read full article below.
Early Thursday morning, court documents revealed that the crypto consortium Fahrenheit had won an the Celsius bid to buy the assets of the bankrupt crypto lender, which had been valued at roughly $2 billion.
Moreover, according to court documents, the firm will pay a $10 million deposit within three days to seal the Celsius bid agreement. And acquire Celsius’s institutional loan portfolio, staked cryptocurrency, mining business, and various alternative assets.
After a protracted bidding procedure. The Fahrenheit group of investors (which includes VC firm Arrington Capital and miner US Bitcoin Corp) was chosen as the high bidder.
Although NovaWulf was first considered the frontrunner. They ultimately decided to go with the Blockchain Recovery Investment Consortium. Which consists of Van Eck Absolute Return Advisers Corporation and GXD Labs LLC.
Moreover, the agreement calls for US Bitcoin Corp to build several crypto mining facilities. Including a new 100 MW plant, in exchange for between $450 and $500 million in liquid bitcoin for the new firm.
Final Regulatory Approval Pending
Celsius and a committee of its creditors have accepted the proposal. But regulatory approval is still required before the transaction can be finalized. Months before, Bankruptcy Court Judge Martin Glenn expressed concern that “regulatory roadblocks” may prevent the sale of Celsius. Just as they had prevented the purchase of a competing lender.
After federal regulators protested the sale. Binance US suddenly canceled its acquisition of $1 billion in assets from insolvent crypto lender Voyager. Citing the “hostile and uncertain regulatory climate” in the United States as the reason. Finally with this current progress of successful Celsius bid, investors will be hopeful of getting their payment back.
After a bank-run-style surge of withdrawals highlighted the platform’s severe liquidity concerns, Celsius declared bankruptcy in July of last year. The failure of the exchange foreshadowed the demise of numerous other prominent cryptocurrency exchanges, lenders, and VC companies, sending the sector into a deep winter.