The consortium, backed by mining company Unitedย States Bitcoinย (BTC) Corp., Arrington Financialย resources, Proof Group, Steven Kokinos, and Ravi Kaza, will take ownership of Celsiusโs institutional loan portfolio, staked cryptocurrency assets, the firmโs Bitcoinย (BTC) mining unit, and other cryptocurrency-related investments.
Fahrenheit will likewise provide the financialย resources, management team, and technology to setย 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 digitalย currency, estimated to be betwixt $450 and $500 Million. Inย addition, Unitedย States Bitcoinย (BTC) Corp will spearhead the construction of numerous Bitcoinย (BTC) mining facilities, including a 100-megawatt plant.
โWe 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 digitalย currency distributions to Celsiusโ customers,โ David Barse and Alan Carr, members of the Special Committee of the Board, stated in a statement.
Barse and Carr alsoย mentionedย that the deal provides โexcellent options for our exit from chapter 11,โ and with the path now set, โwe are looking forward to enabling our customers to move forward from this process.โ
Celsiusย Networkย LLC and Fahrenheit did not instantly respond to Decryptโs request for comment.
Backup plan
Celsiusย Networkย LLC entered Chapter 11 bankruptcy in July aย yearย ago, with a balance sheet hole of approximately $1.2 Billion revealed shortly after by the bankruptcy court, and has been tryingย to come up with a restructuring strategy since.
Digital investment financing company Novawulf was announced as the winning bidder for Celsiusโ troubled assets in February inย theย year, but soonerย orย thereafter lost the race.
To finalize the agreement, which likewise needs approval from the Unitedย 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 Blockchainย Tech Recovery Investment Consortium (BRIC) that serves as a contingency strategy and would come into play โif required for any reason.โ
The Committee will share more info a lot the winning bid and back up bid soon. You can read more details about the auction here:
โ Celsiusย Networkย LLC Official Committee of Unsecured Creditors (@CelsiusUcc) May 25, 2023
In such a scenario, BRIC would setย up a publicly traded mining business where Celsiusย Networkย LLC creditors would receive full ownership of the equity interests, along with a potential management contract with GlobalXDigital.
In theย next weeks, Celsiusย Networkย LLC plans toย participate in negotiations and publicly file plentyย of important documents, subject to approval by the bankruptcy court.
