Fahrenheit Crypto Consortium Wins $2 Billion Bid for Celsius Network Assets

Fahrenheit Crypto Consortium Wins $2 Billion Bid for Celsius Network Assets

Fahrenheit, a crypto consortium backed by Arrington Capital, has won a bid to acquire insolvent lender Celsius Network and its assets for $10 million deposit, pending regulatory approval.

The Arrington Capital-backed grouping beat fellow bidder NovaWulf for Celsius’ assets, with the Blockchain Tech Recovery Investment Consortium selected as back-up.

Cryptocurrency consortium Fahrenheit has won a bid to acquire insolvent lender Celsius Network LLC Network, whose assets were previously valued at around $2 billion, reports by court filings made early in the hours of Thursday morning.

The team will acquire Celsius’s institutional loan portfolio, staked digital 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 financial resources company Arrington Financial resources and miner United States Bitcoin (BTC) Corp, was chosen as successful bidder following a lengthy auction process.

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The Blockchain Tech Recovery Investment Consortium, which includes Van Eck Absolute Return Advisers Corporation and GXD Labs LLC, was chosen as backup, with rival bidder NovaWulf – at one stage the company favorite – losing out.

Under the terms of the deal, the new company will get betwixt $450 and $500 Million in liquid digital currency, and United States Bitcoin (BTC) Corp will construct a range of cryptocurrency mining facilities including a new 100 megawatt plant.

The bid, though accepted by Celsius Network LLC and a committee of its creditors, must still be approved by regulatory authorities to finalize the acquisition. Months ago, Bankruptcy Court Judge Martin Glenn warned “regulatory roadblocks” could plague the sale of Celsius Network LLC much like it thwarted a fellow lender’s acquisition. In April, cryptocurrency exchange Binance. United States abruptly terminated its buy of bankrupt cryptocurrency lender Voyager’s $1 Billion in assets after federal officials appealed the sale, citing the “hostile and uncertain regulatory climate” in the U.S.

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Celsius Network LLC filed for bankruptcy last July after cratering cryptocurrency prices triggered a bank-run style rush of withdrawals that exposed the platform’s profound liquidity issues. The exchange’s implosion was a harbinger of things to come for the cryptocurrency industry, which thereafter saw the collapse of plenty of other high profile cryptocurrency exchanges, lenders and deal financial resources corporations that plunged the industry into a deep winter.

Sandali Handagama.


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