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Crypto Consortium Fahrenheit Wins Bid To Acquire Celsius Network

Beleaguered crypto lender Celsius Network on May 25 announced the completion of the auction process to transfer the assets to crypto consortium Fahrenheit LLC.

Celsius Network in consultation with its official committee of unsecured creditors selected Fahrenheit as the winning bidder in the court-approved auction process. Fahrenheit group consists of US Bitcoin Corp, Arrington Capital, Proof Group, Steven Kokinos, and Ravi Kaza.

Fahrenheit Group to Acquire Celsius Network Assets

According to an official announcement, Fahrenheit will provide the capital, management team, and technology required to successfully establish and operate a new company as per the bid pursuant to a Chapter 11 plan.

Simon Dixon, one of the largest creditors, took to Twitter to reveal that Fahrenheit won the bid to acquire Celsius’ assets valued at $2 billion and manage the new entity owned by Celsius creditors.

According to the plan, the new company to distribute Celsius’ liquid crypto to account holders, settle with the Custody and Withhold groups, and manage Celsius’ illiquid assets by NewCo. The group will acquire Celsius’ institutional loan portfolio, mining subsidiaries, and other alternative investments, as per the latest court filing.

David Barse and Alan Carr, members of the Special Committee of the Board, said:

Fahrenheit will get $500 million in liquid cryptocurrency, which may get reduced to $450 million in case of secondary market purchases. The company needs to complete the pending requirement within weeks to proceed with plans to build and energize 100 MW bitcoin mining facilities.

In addition, the company has secured a backup bid with the Blockchain Recovery Investment Consortium. It will help create mining business in which Celsius creditors will receive 100% of the equity interests.

Meanwhile, Celsius former CEO Alex Mashinsky seeks $1 billion for new project brand Celsius Web Service. The project focusing on “yield” and “custody” was pitched to Goldman Sachs and Abu Dhabi-backed fund ADQ last year before the company filed for bankruptcy.

Earlier, Celsius creditors and New York Attorney General Letitia James sued Alex Mashinsky for defrauding investors. Creditors seek to recover millions of dollars from Mashinsky.

CEL price jumped after the announcement of the acquisition, with the price currently trading at $0.21.