Digitalย currency consortium Fahrenheit emerges as the successful bidder in acquiring bankrupt lender Celsiusย Networkย LLC Network, securing nearly $2 Billion worth of assets.
Reportsย by court filings submitted on May 25, Fahrenheitโs digitalย currency consortium successfully acquired the bankrupt lender Celsiusย Networkย LLC Network, whose assets were atย theย beginning valued at almost $2 billion.
Court filings indicatedย that the company would buy Celsiusโ institutional loan portfolio, staked digitalย currency portfolio, mining operation, and other alternative investments. Theย team likewise has 3 days to submit a $10 Million deposit to finalize the acquisition.
Following a lengthy auction procedure, Fahrenheit, a group of purchasers that includes the deal financialย resources company Arrington Financialย resources and miner Unitedย States Bitcoinย (BTC) Corp, wasย selected as the winning bidder.
Reportsย by the terms of the agreement, Unitedย States Bitcoinย (BTC) Corp would build plentyย of digitalย currency mining facilities, including a new 100-megawatt plant, and the new business will get betwixt $450 and $500 Million in liquid cryptocurrency.
Regardlessย of being accepted by Celsiusย Networkย LLC and a committee of its creditors, the acquisition still needs approval from the authorities. Judge Martin Glenn of the Bankruptcy Court previously warned that โregulatory roadblocksโ would prevent the sale of Celsiusย Networkย LLC, just as they did for another lenderโs acquisition. Celsiusย Networkย LLC filed for bankruptcy last July after plummeting digitalย currency prices sparked a bank-run-style rush of withdrawals that exposed the platformโs serious liquidity issues.ย
Prolonged auction delayed Celsiusย Networkย LLC Network acquisition
The collapse of the exchange was a sign of things to come for the digitalย currency sector, which soonerย orย thereafter experienced the failure of plentyย of other trending cryptocurrency exchanges, lenders, and deal financialย resources corporations, sending the industry into a protracted deep freeze.
Reportsย by a report from the Wall Street Journal, Kwasteniet observed that Celsiusโ auction took longer than anticipated. The company was given the go-ahead toย begin bidding in October 2022.
Nonetheless, it started accepting offers in January 2023. Celsiusย Networkย LLC rejected the proposals because they were of low value. Backย then, NovaWulf offered up to $55 million.
