Cryptocurrency consortium Fahrenheit emerged as the winning bidder to acquire insolvent cryptocurrency lender Celsius Network, court documents show. The acquisition involved Celsius assets, previously valued at approximately $2 billion.
According to court documents filed in the early hours of May 25, the consortium will receive Celsius Network's portfolio of institutional loans, pledged cryptocurrencies, mining units and other alternative investments. The group must pay a $10 million deposit within three days to seal the deal.
After a lengthy auction process, Fahrenheit a consortium of buyers including venture capital firm Arrington Capital and miner US Bitcoin Corp was selected as the winning bidder. The Blockchain Recovery Investment Coalition (BRIC), which includes Van Eck Absolute Return n Advisers Corp and GXD Labs, secured the backup status. The initially favored bidder, NovaWulf, was ultimately rejected. Under the agreement, the new company will receive a large amount of liquid cryptocurrency, estimated to be between $450 million and $500 million. Bitcoin America will al so build crypto mining facilities , including a state-of-the-art 100-megawatt facility. Although Celsius and its creditors have accepted the bid, it still needs regulatory approval to complete the acquisition. Bankruptcy Court Judge Martin Glenn had previously warned of potential "regulatory hurdles" that could hinder a Celsius sale. Likewise, cryptocurrency exchange Binance. US terminated its acquisition of Voyager's $1 billion assets after federal officials appealed, citing an uncertain US regulatory environment. Over the next few weeks, Celsius intends to negotiate with Fahrenheit and Publicly file a plan sponsor agreement, an alternate plan sponsor agreement with BRIC, a revised Chapter 11 plan and a disclosure statement, all these are still subject to bankruptcy court approval.an alternate plan sponsor agreement with BRIC, a revised Chapter 11 plan and a disclosure statement, all these are still subject to bankruptcy court approval.an alternate plan sponsor agreement with BRIC, a revised Chapter 11 plan and a disclosure statement, all these are still subject to bankruptcy court approval.
Celsius filed for bankruptcy in July 2022 after a sharp drop in cryptocurrency prices as a surge in withdrawals akin to a bank run revealed underlying liquidity problems. Its collapse heralded a turbulent period for the crypto industry, marked by the subsequent collapse of various high-profile exchanges, lenders, and venture capital firms, leading to a prolonged "crypto winter" for the industry.
