Wednesday, May 29, 2024
HomeDeFiFahrenheit Acquires Celsius Network via Bid process

Fahrenheit Acquires Celsius Network via Bid process

On May 25, insolvent cryptocurrency lender Celsius Network stated that the auction procedure to transfer the company’s assets to crypto alliance Fahrenheit LLC had been successful.

Fahrenheit was chosen as the successful bidder in the court-approved auction procedure by Celsius Network, in cooperation with its formal committee of non-secured creditors. Fahrenheit group is made up of entities like Proof Group, Ravi Kaza, Steven Kokinos, Arrington Capital and US Bitcoin Corp.

An official statement claims that Fahrenheit will offer the funding, managerial staff, and technologies needed to successfully launch and run a new firm in accordance with the proposal under a Chapter 11 plan.

One of the biggest lenders, Simon Dixon, announced on Twitter that Fahrenheit emerged victorious in the auction to purchase the $2 billion worth of Celsius resources and run a new company operated by Celsius creditors.

The new business will handle Celsius’ illiquid assets for NewCo and disburse Celsius’ liquid cryptocurrency to creditors while also settling with the Custody and Withhold entities. According to the most recent court paperwork, the firm would buy Celsius’ institutional loan portfolio, mining companies, and other investment opportunities.

Members of the Board’s Special Committee David Barse and Alan Carr stated, “We acknowledge the tremendous amount of interest that Celsius has attracted from other buyers and look forward to cooperating with Fahrenheit to hasten the restructuring process and share recovery to stakeholders.”

Fahrenheit Acquires Celsius Network
Fahrenheit Acquires Celsius Network

Fahrenheit will receive $500 million in liquid digital currency; however, this amount may drop to $450 million in the case that secondary market sales are made. For the corporation to move forward with plans to construct and energise 100 MW bitcoin mining facilities, the remaining demand must be fulfilled in the next weeks.

Furthermore, the business has a backup offer from the Blockchain Recovery Investment Group. It will assist in the establishment of mining companies where the equity rights of Celsius customers will be fully owned.

Alex Mashinsky, the former CEO of Celsius, is requesting $1 billion for a new initiative under the name Celsius Web Service. Before the business filed for bankruptcy, the idea with an emphasis on “yield” and “custody” was presented to Goldman Sachs and the fund ADQ, backed by Abu Dhabi.

Letitia James, the New York Attorney General, and Celsius customers had already filed a lawsuit against Alex Mashinsky for misleading investors. Mashinsky is being investigated by creditors for the recovery of millions of dollars.

Following the acquisition’s announcement, the price of CEL increased, and it is presently trading at $0.17.

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