The year 2022 saw a wave of insolvencies in the crypto market, with numerous firms filing for bankruptcy. Among them was the Celsius Network, a prominent crypto lender, which was one of the early casualties. However, nearly a year later, the assets of the company have been successfully acquired by another firm.
Coincidentally, Celsius’s funds were being acquired by a crypto consortium called Fahrenheit. The consortium entails several buyers. Notable participants in this group include venture capital firm Arrington Capital and miner U.S. Bitcoin Corp. The group is set to acquire Celsius’s institutional loan portfolio, staked crypto mining unit, and other alternative investments. To further finalize the deal, the consortium is required to make a deposit of $10 million. This should be done within three days, as stated in the court filings.
The way forward for Celsius & Fahrenheit
In the latest deal, the new firm will acquire about $450 to $500 million worth of liquid crypto assets. It is worth mentioning that the assets of the Celsius Network were previously valued at $2 billion. Additionally, U.S. Bitcoin Corp, one of the members of the consortium, will take on the construction of various cryptocurrency mining facilities, including a new plant with a capacity of 100 megawatts.
While Celsius and a committee of its creditors have accepted the bid, the acquisition is still pending regulatory approval to be finalized. In addition to the Fahrenheit consortium, the backup-bidder for the acquisition was the Blockchain Recovery Investment Consortium, which includes Van Eck Absolute Return Advisers Corporation and GXD Labs LLC. The involvement of these groups noted the competitive nature of the acquisition process for Celsius Network’s assets. Elaborating on the same, David Barse and Alan Carr, members of the Special Committee of the Board further said,
“The dynamic engagement in our auction provided us with excellent options for our exit from chapter 11. We are grateful for the collaboration of the Committee, and with our path now set, we are looking forward to enabling our customers to move forward from this process.”