Michael Arrington Leaves Celsius Board Amid Disagreements
Michael Arrington, founder of Arrington Capital, has decided to step down from the board of the Delaware company formed from the bankrupt crypto lender Celsius. This comes just thirteen days after he joined the board. Ravi Kaza, a member of Fahrenheit Holdings, the consortium that acquired Celsius’s assets, will replace Arrington.
In a recent post on X, Arrington mentioned that his departure was due to disagreements about the composition of the board and the appointment of board observers. He also stated that his statement had been heavily edited by attorneys. Despite leaving the board, Arrington still supports the deal and plans to contribute in other ways.
Arrington’s Dispute Over Board Observers
Arrington’s disagreement seems to be centered around Simon Dixon’s appointment as one of the new board observers for “NewCo,” the successor to Celsius’s operations. In his X post, Arrington did not warmly welcome Dixon to the position. However, Dixon responded with a tweet expressing goodwill towards Arrington.
Both Arrington and Dixon hinted at there being more to the story, suggesting that additional information may come out in due time. However, neither of them provided further details when asked for comment by The Block.
A Critical Moment for Celsius
The board shakeup coincides with a crucial vote by Celsius creditors on whether to approve the company’s asset sale plan to Fahrenheit consortium. The results of this vote will be announced on Monday, September 25th. If approved, the plan will then go before the United States Bankruptcy Court for final approval on October 2nd. If the vote fails, Celsius and Fahrenheit will need to reconsider their options.
Hot Take: Uncertainty Surrounds Celsius’s Future
The departure of Michael Arrington from the Celsius board raises questions about the company’s stability and the decision-making process. With disagreements over board composition and the appointment of observers, it seems there may be underlying tensions within the organization. While Arrington remains supportive of the deal, his departure highlights potential issues that may need to be resolved for Celsius to move forward successfully. As creditors await the results of the vote on the asset sale plan, uncertainty looms over Celsius’s future. The outcome of this critical moment will determine whether Celsius can secure its path to recovery or if further challenges lie ahead.
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