Crypto Consortium Fahrenheit Acquires Bankrupt Celsius’ Assets

In a major development, crypto lending company Celsius Network has taken a significant step towards recovery from bankruptcy.

The acquisition of Celsius Network’s assets has been secured by the crypto consortium Fahrenheit, bringing new hope to the troubled lender. Backed by prominent industry players such as US Bitcoin Corp., Arrington Capital, Proof Group, Steven Kokinos, and Ravi Kaza, Fahrenheit is set to reshape the future of Celsius Network. Let’s delve into the details of this acquisition and its implications for the company’s revival.

Ownership of Assets and Future Operations:

Fahrenheit, supported by its members, will assume ownership of Celsius Network’s institutional loan portfolio, staked crypto assets, the firm’s Bitcoin mining unit, and other investments in the cryptocurrency space. Moreover, Fahrenheit will provide the necessary capital, management expertise, and advanced technology to establish and operate a new public company that complies with regulatory standards. This move signifies a positive turning point for Celsius Network, with renewed prospects for its customers and stakeholders.

Substantial Liquid Cryptocurrency and Mining Facilities:

As part of the acquisition, the newly-formed company will receive a significant amount of liquid cryptocurrency, estimated to be between $450 and $500 million. Additionally, US Bitcoin Corp will spearhead the construction of various Bitcoin mining facilities, including a state-of-the-art 100-megawatt plant. These strategic initiatives will enhance the operational capabilities of the new entity and contribute to its long-term success.

Positive Outlook and Customer Benefits:

David Barse and Alan Carr, members of the Special Committee of the Board, expressed their satisfaction with the outcome of the competitive auction process. They emphasized the substantial benefits this deal brings to Celsius Network’s customers, including lower management fees and increased distributions of liquid cryptocurrency. This development paves the way for a successful exit from Chapter 11 bankruptcy and offers renewed opportunities for customers to move forward confidently.

Next Steps and Backup Plan:

To finalize the agreement, Fahrenheit is required to submit a deposit of $10 million within three days, pending approval from the U.S. Bankruptcy Court for the Southern District of New York. Additionally, the company has secured a backup bid from the Blockchain Recovery Investment Consortium (BRIC) to serve as a contingency plan if needed. This backup plan involves establishing a publicly traded mining business, where Celsius creditors would receive full ownership of equity interests, along with a potential management contract with GlobalXDigital.

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: https://t.co/8tK2e2oOzW

— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) May 25, 2023

The acquisition of Celsius Network’s assets by the crypto consortium Fahrenheit marks a significant milestone in the company’s journey towards recovery. With a robust team, ample capital, and advanced technology, Fahrenheit is well-positioned to establish and operate a compliant and prosperous new entity. The infusion of liquid cryptocurrency and the development of cutting-edge mining facilities further solidify the prospects for Celsius Network’s revitalization. As the approval process unfolds, Celsius Network prepares to negotiate and file essential documents, signaling a promising path forward in the post-bankruptcy phase.