Insolvent crypto lender Celsius Network’s assets are set to be picked up by crypto consortium Fahrenheit, according to court filings released early Thursday.
Celsius’s assets were previously valued at around $2 billion, before its bankruptcy filing in July 2022.
The Fahrenheit consortium, comprising prominent players such as Arrington Capital and US Bitcoin Corp, emerged as winners for the assets after an extensive auction process, according to reports.
The acquisition involves the transfer of Celsius's institutional loan portfolio, staked cryptocurrencies, mining unit, and additional alternative investments.
The Blockchain Recovery Investment Consortium, including Van Eck Absolute Return Advisers Corporation and GXD Labs LLC, secured the backup position, while rival bidder NovaWulf, initially favored by many, fell short.
As part of the agreement, Fahrenheit will need to furnish a $10 million deposit within three days to finalize the transaction. Notably, the new entity will receive a substantial sum of liquid cryptocurrency, estimated to be between $450 and $500 million, while US Bitcoin Corp will construct state-of-the-art crypto mining facilities, including a 100-megawatt plant.
Celsius's bankruptcy triggered by a rapid downturn in crypto prices and a liquidity crisis that foreshadowed a prolonged winter for the industry, with subsequent collapses of prominent exchanges, lenders, and venture capital firms.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas