The Arrington Capital-backed grouping beat fellow bidder NovaWulf for Celsiusโ assets, with the Blockchainย Tech Recovery Investment Consortium selected as back-up.
Cryptocurrency consortium Fahrenheit has won a bid to acquire insolvent lender Celsiusย Networkย LLC Network, whose assets were previously valued at around $2 billion, reportsย by court filings made early in the hours of Thursday morning.
Theย team will acquire Celsiusโs institutional loan portfolio, staked digitalย currencies, mining unit and additional alternative investments, and must pay a deposit of $10 Million within 3 days to cement the deal, court filings show.
Fahrenheit, a consortium of buyers that includes deal financialย resources company Arrington Financialย resources and miner Unitedย States Bitcoinย (BTC) Corp, wasย chosen as successful bidder following a lengthy auction process.
The Blockchainย Tech Recovery Investment Consortium, which includes Van Eck Absolute Return Advisers Corporation and GXD Labs LLC, wasย chosen as backup, with rival bidder NovaWulf โ at one stage the company favorite โ losing out.
Under the terms of the deal, the new company will get betwixt $450 and $500 Million in liquid digitalย currency, and Unitedย States Bitcoinย (BTC) Corp will construct a range of cryptocurrency mining facilities including a new 100 megawatt plant.
The bid, though accepted by Celsiusย Networkย LLC and a committee of its creditors, must still be approved by regulatoryย authorities to finalize the acquisition. Months ago, Bankruptcy Court Judge Martin Glenn warned โregulatory roadblocksโ could plague the sale of Celsiusย Networkย LLC much like it thwarted a fellow lenderโs acquisition. In April, cryptocurrency exchange Binance. Unitedย States abruptly terminated its buy of bankrupt cryptocurrency lender Voyagerโs $1 Billion in assets after federal officials appealed the sale, citing the โhostile and uncertain regulatory climateโ in the U.S.
Celsiusย Networkย LLC filed for bankruptcy last July after cratering cryptocurrency prices triggered a bank-run style rush of withdrawals that exposed the platformโs profound liquidity issues. The exchangeโs implosion was a harbinger of things to come for the cryptocurrency industry, which thereafter saw the collapse of plentyย of other high profile cryptocurrency exchanges, lenders and deal financialย resources corporations that plunged the industry into a deep winter.
Sandali Handagama.
