The collapse of Celsiusย Networkย 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 theย capacity fallout.ย ย
With numerous corporations battling it out to acquire the assets, Fahrenheit resurfaced as the successful winner of the bid, reportsย 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 Celsiusโ assets. The selection of the Blockchainย 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 Celsiusโs institutional loan portfolio
As part of the acquisition, Fahrenheit will acquire the staked digitalย currencies, mining unit, additional alternative investments, and Celsiusโs institutional loan portfolio. Inย addition, Fahrenheit should pay a deposit of $10 Million in 3 days to finalize the deal.
Reportsย by the agreement, 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. has committed to constructing numerous digitalย currency mining facilities, including the development of a new 100-megawatt plant.
Althoughย while Celsiusย Networkย LLC and a committee of its creditors have accepted the bid, it isย worthย mentioningย that regulatory approval isย still required to complete the acquisition process. The finalization of the acquisition hinges on obtaining the necessary approvals from relevant regulatory authorities.
Celsiusย Networkย LLC Network filed for bankruptcy on July 13, 2022. Celsiusย Networkย LLC froze withdrawals in June 2022, citing โextreme market conditions.โ The companyโs bankruptcy filing is the latest sign of trouble in the digitalย 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, Celsiusย Networkย LLC, and the FTXย Tradingย Ltd, to name a few.
