Fahrenheit LLC wins the $2B bid to acquire bankrupt Celsius Network

2023-05-25 05:54:34 ET

Early Thursday’s court filings confirmed that consortium Fahrenheit won the bid to acquire bankrupt cryptocurrency lender

Celsius

. Earlier stats valued the lender’s assets at about $2B. Fahrenheit comprises Arrington Capital, US Bitcoin Corp, Ravi Kaza, Steven Kokinos, and Proof Group.

Fahrenheit will acquire the platform’s alternative investments, staked crypto, mining unit, and institutional loan profile. Moreover, court filings indicated that the group should pay a $10 million deposit (within three days) to seal the deal.

Fahrenheit to acquire Celsius’ assets

Celsius Network – with its unsecured creditors’ committee -chose crypto consortium Fahrenheit as the winner of its asset auction process. The official report indicates that Fahrenheit will offer the management team, technology, and capital needed to establish and run a new firm (successfully).

Meanwhile, the new firm will distribute Celsius’ crypto tokens to account owners, manage the firm’s illiquid assets, and settle with the Custody & Withhold groups. The group will obtain Celsius’ mining subsidiaries, institutional loan portfolios, and alternative investments.

Fahrenheit group will get liquid crypto worth $500 million – though the figure could reduce to $450M in case of secondary purchases. Moreover, the firm selected the Blockchain Recovery Investment Consortium as a backup. It will aid in forming a mining business where Celsius creditors will get 100% equity interest.

Meantime, former Celsius CEO Alex Mashinsky continues with the plan to create Celsius Web Service – a project focused on custody and yield. He pitched the project to Abu Dhabi-supported fund ADQ and Goldman Sachs before filing for insolvency (last year).

Celsius (CEL)

price reacted to the acquisition news with upsurges. The

altcoin

climbed to change hands at $0.2146 at press time. Nonetheless, Invezz.com

reported

a deteriorating crypto market today. Thus, CEL might struggle to retain its upward wave.

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