Fahrenheit Crypto Group Acquires Bankrupt Celsius Assets

Fahrenheit Crypto Group Acquires Bankrupt Celsius Assets

Fahrenheit, backed by mining company US Bitcoin Corp., Arrington Capital, Proof Group, Steven Kokinos, and Ravi Kaza, has won the bid to acquire insolvent lender Celsius Network, taking ownership of Celsius’s loan portfolio, staked crypto assets, Bitcoin mining unit, and other crypto-related investments.

Cryptocurrency consortium Fahrenheit has resurfaced as the winning bidder in the acquisition of the insolvent lender Celsius Network LLC Network, court filings published Thursday revealed.

The consortium, backed by mining company United States Bitcoin (BTC) Corp., Arrington Financial resources, Proof Group, Steven Kokinos, and Ravi Kaza, will take ownership of Celsius’s institutional loan portfolio, staked cryptocurrency assets, the firm’s Bitcoin (BTC) mining unit, and other cryptocurrency-related investments.

Fahrenheit will likewise provide the financial resources, management team, and technology to set up and operate the new public, regulatorily compliant company.

As part of the deal, the newly-formed company will receive a substantial amount of liquid digital currency, estimated to be betwixt $450 and $500 Million. In addition, United States Bitcoin (BTC) Corp will spearhead the construction of numerous Bitcoin (BTC) mining facilities, including a 100-megawatt plant.

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“We are very pleased that our competitive auction process produced a positive result for customers, including, most prominently, hundreds of millions of dollars in lower management fee savings and increased liquid digital currency distributions to Celsius’ customers,” David Barse and Alan Carr, members of the Special Committee of the Board, stated in a statement.

Barse and Carr also mentioned that the deal provides “excellent options for our exit from chapter 11,” and with the path now set, “we are looking forward to enabling our customers to move forward from this process.”

Celsius Network LLC and Fahrenheit did not instantly respond to Decrypt‘s request for comment.

Backup plan

Celsius Network LLC entered Chapter 11 bankruptcy in July a year ago, with a balance sheet hole of approximately $1.2 Billion revealed shortly after by the bankruptcy court, and has been trying to come up with a restructuring strategy since.

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Digital investment financing company Novawulf was announced as the winning bidder for Celsius’ troubled assets in February in the year, but sooner or  thereafter lost the race.

To finalize the agreement, which likewise needs approval from the United States Bankruptcy Court for the Southern District of New York, Fahrenheit is required to submit a deposit of $10 Million within 3 days, as stated in the court documents.

Furthermore, the company has announced that it has obtained a backup bid from the Blockchain Tech Recovery Investment Consortium (BRIC) that serves as a contingency strategy and would come into play “if required for any reason.”

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In such a scenario, BRIC would set up a publicly traded mining business where Celsius Network LLC creditors would receive full ownership of the equity interests, along with a potential management contract with GlobalXDigital.

In the next weeks, Celsius Network LLC plans to participate in negotiations and publicly file plenty of important documents, subject to approval by the bankruptcy court.


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