- The consortium is asked to mandatorily make a $10 million deposit within three days to finalize the acquisition
- The backup position in the Celsius bid was secured by the Blockchain Recovery Investment Consortium (BRIC),
Crypto consortium Fahrenheit has won the bid to acquire bankrupt crypto lender Celsius Network. As per court filings, Fahrenheit will acquire Celsius’s institutional loan portfolio, staked cryptocurrencies, mining unit, and other alternative investments.
The consortium is also asked to mandatorily make a $10 million deposit within three days to finalize the acquisition. The Fahrenheit consortium comprises of Arrington Capital, a venture capital firm, and crypto miner U.S. Bitcoin Corp.
In accordance with the deal terms, the new company will be granted a significant sum of liquid cryptocurrency, estimated to be between $450 million and $500 million. Moreover, U.S. Bitcoin Corp has been awarded the responsibility of constructing a diverse range of crypto mining facilities, which includes the development of a cutting-edge 100-megawatt plant.
The bid is now awaiting regulator approval to be finalized. The backup position in the Celsius bid was secured by the Blockchain Recovery Investment Consortium (BRIC), which comprises Van Eck Absolute Return Advisers Corp and GXD Labs. Blockchain Recovery Investment Committee is backed by crypto exchange Gemini, fund manager VanEck, Bitcoin mining firm Global X Digital and Plutus Lending. Initially, NovaWulf, a rival bidder, was favored but ultimately lost out on the Celsius bid.
New Jersey-based Celsius filed for U.S. bankruptcy in July last year after freezing customer withdrawals. Celsius said at that time that it had more than 1.7 million registered users and around 300,000 active users with account balances higher than $100.
In the future, the bankrupt crypto lender intends to negotiate and publicly file a plan sponsor agreement with Fahrenheit, a backup plan sponsor agreement with the BRIC, a revised Chapter 11 plan, and a disclosure statement,
The latest development also comes amid Binance.US abruptly ending its acquisition deal of another bankrupt crypto lender, Voyager’s $1 billion in assets after federal officials appealed the sale, citing the “hostile and uncertain regulatory climate” in the United States.