In a turnย of events, digitalย currency consortium Fahrenheit has resurfaced triumphant in a high-stakes bidding war, securing the acquisition of insolvent lender Celsiusย Networkย LLC Network. The deal, which includes Celsiusโs institutional loan portfolio, staked digitalย currencies, mining units, and alternative investments, marks a wholeย lotย of development in the cryptocurrency industry.
Led by deal financialย resources company Arrington Financialย resources and miner Unitedย States Bitcoinย (BTC) Corp, the consortiumโs victory is asย ofย now one of the trending news in the industry as the acquisition was of the recently bankrupted cryptocurrency lender Celsiusย Networkย LLC which resulted in losses for some investors.ย
After a rigorous auction process, Fahrenheit, backed by Arrington Financialย resources, resurfaced as the successful bidder, outmaneuvering rival bidders NovaWulf and the Blockchainย Tech Recovery Investment Consortium. The Arrington Capital-backed grouping showcased its determination and financial prowess, inย theย end winning the bid to acquire Celsiusโs assets.
With Celsiusโs assets previously valued at approximately $2 billion, this acquisition represents a major coup for Fahrenheit and its partners.
Fahrenheitโs Winning Arsenal And Ambitious Plans
Under the terms of the acquisition, Fahrenheit and its consortium members are set toย win control of Celsiusโs institutional loan portfolio and an array of staked digitalย currencies, mining operations, and alternative investments,ย reportsย by CoinDesk.
To seal the deal, the consortium must submit a $10 Million deposit within 3 days, solidifying their commitment and intent to move forward. Inย addition, the new company formed through the acquisition will receive an amount of liquid digitalย currency, estimated to be betwixt $450 Million and $500 million.
In a move that underlines Fahrenheitโs vision for growth, Unitedย States Bitcoinย (BTC) Corp, a member of the consortium, will spearhead the construction of new crypto-mining facilities.
The ambitious strategy includes the establishment of a cutting-edge 100-megawatt plant, positioning Fahrenheit at the forefront of crypto-mining innovation, and expanding the consortiumโs influence in the industry.
Regulatory Hurdles And The Road To Approval
Althoughย while Celsiusย Networkย LLC and its creditors have accepted the bid, the acquisition still requires regulatory approval before it can be finalized. This critical step, overseen by regulatoryย authorities, will determine the destiny of the deal and its implications for the cryptocurrency industry.
The bankruptcy court, aware of potential โregulatory roadblocks,โ has cautioned that similar challenges have derailed previous attempts at acquisitions within the sector.
Celsiusย Networkย LLC Network filed for bankruptcy last July. The filing served as a stark reminder of the volatility and challenges faced by the cryptocurrency industry. A sharp decline in cryptocurrency prices triggered a wave of withdrawals, exposing Celsiusโs liquidity issues and culminating in its collapse.
The fallout from Celsiusโs implosion rippled through the industry, casting a shadow over other high-profile cryptocurrency exchanges, lenders, and deal financialย resources corporations, ushering in a period of uncertainty and introspection.
Nonetheless, following the acquisition of Celsiusย Networkย LLC won by Fahrenheit, the cryptocurrencyย market hasnโt made any wholeย lotย of reaction, instead, the market is asย ofย now in a downtrend down by nearly 1 percent after recording about 2 percent gain on Wednesday.
Featured image from Unsplash, Chart from TradingView
