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Fahrenheit Takes Over Celsius, Forms New Company

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Crypto Consortium Fahrenheit Acquires Celsius Network Assets, Forms New Company Owned by Celsius Creditors

Crypto lender Celsius Network, facing challenges, announced on May 25 that the asset transfer to crypto consortium Fahrenheit LLC has been successfully concluded.

Celsius Network, in collaboration with its official committee of unsecured creditors, chose Fahrenheit as the successful bidder in the court-sanctioned auction. The Fahrenheit group includes US Bitcoin Corp, Arrington Capital, Proof Group, Steven Kokinos, and Ravi Kaza.

Fahrenheit Group Set to Acquire Celsius Network Assets:

According to an official statement, Fahrenheit will supply the necessary funding, management team, and technology to effectively create and run a new company as part of the bid in accordance with a Chapter 11 plan.

Also Read This Related: Celsius transfers $781M of stETH during Lido withdrawal launch

Simon Dixon, a major creditor, shared on Twitter that Fahrenheit has emerged as the winning bidder to acquire Celsius’ assets, which are estimated to be worth $2 billion. Fahrenheit will oversee the management of the new company, owned by the creditors of Celsius.

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As per the plan, Celsius’ liquid cryptocurrencies will be distributed to account holders, settlements will be made with the Custody and Withhold groups, and NewCo will handle the management of Celsius’ illiquid assets. The group will also acquire Celsius’ institutional loan portfolio, mining subsidiaries, and other alternative investments.

“David Barse and Alan Carr, members of the Special Committee of the Board, expressed their gratitude for the significant interest shown by various bidders in the Celsius platform. They expressed their commitment to collaborating with Fahrenheit to streamline the restructuring process and ensure that creditors receive their recoveries in a timely manner”.

Fahrenheit will receive $500 million worth of liquid cryptocurrency, with a possibility of it being reduced to $450 million if there are any secondary market purchases. The company has a few weeks to fulfill the remaining requirements in order to proceed with its plans of constructing and operating 100 MW bitcoin mining facilities.

Furthermore, the company has obtained a backup bid from the Blockchain Recovery Investment Consortium. This bid aims to establish a mining business where Celsius creditors will receive 100% ownership of the equity interests.

Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.

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  • SHBAZ

    A crypto enthusiast, Loves to write, Loves to explore and stay up-to-date about the latest developments in the crypto world. #Btc #Crypto #NFT

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