Beleaguered cryptocurrency lender Celsiusย Networkย LLC Network on May 25 announced the completion of the auction process to transfer the assets to cryptocurrency consortium Fahrenheit LLC.
Celsiusย Networkย 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 Unitedย States Bitcoinย (BTC) Corp, Arrington Financialย resources, Proof Group, Steven Kokinos, and Ravi Kaza.
Fahrenheit Group to Acquire Celsiusย Networkย LLC Network Assets
Reportsย by an official announcement, Fahrenheit will provide the financialย resources, management team, and technology required to successfully setย 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 Celsiusโ assets valued at $2 Billion and manage the new entity owned by Celsiusย Networkย LLC creditors.
๐ @FahrenheitHldg won, #BRIC is backup. Itโs official. Term sheet included. Iย will cover more on my Space tonight #Celsius Creditors ๐ to all who participated.
โ Simon Dixon (@SimonDixonTwitt) May 25, 2023
Reportsย by the strategy, the new company to distribute Celsiusโ liquid cryptocurrency to account holders, settle with the Custody and Withhold groups, and manage Celsiusโ illiquid assets by NewCo. Theย team will acquire Celsiusโ 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:
โWe appreciate the robust interest that the Celsiusย Networkย LLC platform has received from competing bidders and look forward to working with Fahrenheit to expedite the restructuring and distribute recoveries to creditors.โ
Fahrenheit will get $500 Million in liquid digitalย currency, whichย canย potentially get reduced to $450 Million in case of secondary market purchases. The company hasย toย complete the pending requirement within weeks to proceed with intendsย to build and energize 100 MW Bitcoinย (BTC) mining facilities.
Additionally, the company has secured a backup bid with the Blockchainย Tech Recovery Investment Consortium. It willย assist create mining business in which Celsiusย Networkย LLC creditors will receive 100 percent of the equity interests.
Inย theย meantime, Celsiusย Networkย LLC previous CEO Alex Mashinsky seeks $1 Billion for new project brand Celsiusย Networkย LLC Web Service. The project focusing on โyieldโ and โcustodyโ was pitched to Goldmanย Sachsย Group and Abu Dhabi-backed fund ADQ aย yearย ago before the company filed for bankruptcy.
Earlier, Celsiusย Networkย 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 asย ofย now currentlyย worth $0.21.
