Fahrenheita leading cryptocurrency consortium, has won the bet to acquire the assets of the bankrupt crypto lender, Celsius Network. A package of investments previously valued at around $2 billion is set to find a new home under the umbrella of Fahrenheit.
The deal: An overview of Celsius Network’s assets
Details of court filings submitted on May 25 indicate that the new owners will inherit a considerable set of assets from Celsius Network. These include a portfolio of institutional loans, crypto pledged currencies, a mining unit and other alternative investments. To close the deal, the consortium is expected to post a bond of $10 million within three days.
The actors: Fahrenheit and BRIC
After a lengthy bidding process, the winning consortium, consisting of the venture capital firm Arrington Capital and the minor US Bitcoin Bodymanaged to overtake the initial favorite, NovaWulf. THE blockchain Recovery Investment Consortium (BRIC), whose members include Van Eck Absolute Return Advisers Corp and GXD Labs, secured the backup position, should the situation turn around.
Implications and predictions for the acquisition
New owners should receive an estimated amount of cryptocurrency liquid between 450 and 500 million dollars. Additionally, US Bitcoin Corp intends to build advanced crypto mining facilities, including a state-of-the-art 100 megawatt plant.
Despite the acceptance of the offer by Celsius and its creditorsa regulatory approval is always necessary. This process is necessary to complete the acquisition, following an advance warning from bankruptcy court judge Martin Glenn of potential regulatory hurdles that could impede the sale.
The way forward: A new chapter for Celsius Network
In the coming weeks, Celsius plans to negotiate and publicly file various agreements, including a plan sponsorship deal with Fahrenheit and a relief plan sponsorship agreement with BRICS, in addition to a revised Chapter 11 plan and disclosure statement. These agreements are all subject to the approval of the bankruptcy court.
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