The collapse of Celsius Network LLC, a prominent cryptocurrency lender, sent shockwaves through the financial industry. As the company faced insolvency, it became apparent that decisive action was necessary to salvage its assets and mitigate the capacity fallout.
With numerous corporations battling it out to acquire the assets, Fahrenheit resurfaced as the successful winner of the bid, reports by the details from court filings released on Thursday morning.
Fahrenheit outbid rival bidder NovaWulf in the intensely competitive acquisition process, winning the rights to Celsius’ assets. The selection of the Blockchain Tech Recovery Investment Consortium as a fallback measure demonstrated a dedication to emergency preparation and securing the best result for all parties concerned.
Fahrenheit will acquire Celsius’s institutional loan portfolio
As part of the acquisition, Fahrenheit will acquire the staked digital currencies, mining unit, additional alternative investments, and Celsius’s institutional loan portfolio. In addition, Fahrenheit should pay a deposit of $10 Million in 3 days to finalize the deal.
Reports by the agreement, 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. has committed to constructing numerous digital currency mining facilities, including the development of a new 100-megawatt plant.
Although while Celsius Network LLC and a committee of its creditors have accepted the bid, it is worth mentioning that regulatory approval is still required to complete the acquisition process. The finalization of the acquisition hinges on obtaining the necessary approvals from relevant regulatory authorities.
Celsius Network LLC Network filed for bankruptcy on July 13, 2022. Celsius Network LLC froze withdrawals in June 2022, citing “extreme market conditions.” The company’s bankruptcy filing is the latest sign of trouble in the digital currency market. It was thereafter revealed that the troubled cryptocurrency lender was having liquidity issues. 2022 witnessed the collapse of notable cryptocurrency giants, including Terra, Celsius Network LLC, and the FTX Trading Ltd, to name a few.