Beleaguered cryptocurrency lender Celsius Network LLC Network on May 25 announced the completion of the auction process to transfer the assets to cryptocurrency consortium Fahrenheit LLC.
Celsius Network LLC Network in consultation with its official committee of unsecured creditors selected Fahrenheit as the winning bidder in the court-approved auction process. Fahrenheit group consists of United States Bitcoin (BTC) Corp, Arrington Financial resources, Proof Group, Steven Kokinos, and Ravi Kaza.
Fahrenheit Group to Acquire Celsius Network LLC Network Assets
Reports by an official announcement, Fahrenheit will provide the financial resources, management team, and technology required to successfully set up and operate a new company as per the bid pursuant to a Chapter 11 plan.
Simon Dixon, one of the largest creditors, took to Twitter to reveal that Fahrenheit won the bid to acquire Celsius’ assets valued at $2 Billion and manage the new entity owned by Celsius Network LLC creditors.
🍎 @FahrenheitHldg won, #BRIC is backup. It’s official. Term sheet included. I will cover more on my Space tonight #Celsius Creditors 🙏 to all who participated.
— Simon Dixon (@SimonDixonTwitt) May 25, 2023
Reports by the strategy, the new company to distribute Celsius’ liquid cryptocurrency to account holders, settle with the Custody and Withhold groups, and manage Celsius’ illiquid assets by NewCo. The team will acquire Celsius’ institutional loan portfolio, mining subsidiaries, and other alternative investments, as per the latest court filing.
David Barse and Alan Carr, members of the Special Committee of the Board, said:
“We appreciate the robust interest that the Celsius Network LLC platform has received from competing bidders and look forward to working with Fahrenheit to expedite the restructuring and distribute recoveries to creditors.”
Fahrenheit will get $500 Million in liquid digital currency, which can potentially get reduced to $450 Million in case of secondary market purchases. The company has to complete the pending requirement within weeks to proceed with intends to build and energize 100 MW Bitcoin (BTC) mining facilities.
Additionally, the company has secured a backup bid with the Blockchain Tech Recovery Investment Consortium. It will assist create mining business in which Celsius Network LLC creditors will receive 100 percent of the equity interests.
In the meantime, Celsius Network LLC previous CEO Alex Mashinsky seeks $1 Billion for new project brand Celsius Network LLC Web Service. The project focusing on “yield” and “custody” was pitched to Goldman Sachs Group and Abu Dhabi-backed fund ADQ a year ago before the company filed for bankruptcy.
Earlier, Celsius Network LLC creditors and New York Attorney General Letitia James sued Alex Mashinsky for defrauding investors. Creditors seek to recover millions of dollars from Mashinsky.
CEL price jumped after the notice of the acquisition, with the price as of now currently worth $0.21.