Fahrenheit successfully bid to buy the assets of cryptocurrency lender Celsius.

News Desk6
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The Arrington Capital-backed consortium outbid NovaWulf to acquire Celsius Network’s assets, while the Blockchain Recovery Investment Consortium serves as a backup bid.

Court filings have revealed that cryptocurrency consortium, Fahrenheit emerged as the successful bidder to acquire insolvent lender Celsius Network. The assets of Celsius Network, previously valued at approximately $2 billion, are involved in the acquisition.

The court filings which were submitted in the early hours of May 25, show that the consortium will obtain Celsius Network’s institutional loan portfolio, staked cryptocurrencies, mining unit and other alternative investments. To finalize the agreement, the group is required to make a $10 million deposit within three days.

After a lengthy auction process, Fahrenheit, a consortium of buyers comprising venture capital firm Arrington Capital and miner U.S. Bitcoin Corp, has been chosen as the successful bidder.The Blockchain Recovery Investment Consortium, which includes Van Eck Absolute Return Advisers Corporation and GXD Labs LLC, secured the backup position, while rival bidder NovaWulf, which was initially favored, ultimately lost out.

As per the agreement, the new company will receive a substantial amount of liquid cryptocurrency, estimated to be between $450 million and $500 million. Additionally, U.S. Bitcoin Corp will undertake the construction of various crypto mining facilities, including a state-of-the-art 100-megawatt plant.

While Celsius and its creditors have accepted the bid, regulatory approval is still required to complete the acquisition. Bankruptcy Court Judge Martin Glenn had previously cautioned about potential “regulatory roadblocks” that could impede Celsius’s sale, similar to another lender’s acquisition. In a similar situation, crypto exchange Binance U.S. terminated its purchase of Voyager’s $1 billion in assets due to federal officials appealing the sale, citing the uncertain regulatory environment in the U.S.

In the coming weeks, Celsius 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, all of which remains subject to bankruptcy court approval.

Following a significant decline in crypto prices, Celsius filed for bankruptcy in July last year due to a surge in withdrawals resembling a bank run, revealing underlying liquidity problems. The exchange’s collapse foreshadowed a tumultuous period for the crypto industry, marked by the subsequent downfall of various prominent exchanges, lenders and venture capital firms, leading to a prolonged winter in the industry.

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