The collapse of Celsius, a prominent crypto lender, sent shockwaves through the financial industry. As the company faced insolvency, it became apparent that decisive action was necessary to salvage its assets and mitigate the potential fallout.
With numerous firms battling it out to acquire the assets, Fahrenheit emerged as the successful winner of the bid, according to the details from court filings released on Thursday morning.
Fahrenheit outbid rival bidder NovaWulf in the intensely competitive acquisition process, winning the rights to Celsius’ assets. The selection of the Blockchain Recovery Investment Consortium as a fallback measure demonstrated a dedication to emergency preparation and securing the best result for all parties concerned.
Fahrenheit will acquire Celsius’s institutional loan portfolio
As part of the acquisition, Fahrenheit will acquire the staked cryptocurrencies, mining unit, additional alternative investments, and Celsius’s institutional loan portfolio. Additionally, Fahrenheit should pay a deposit of $10 million in three days to finalize the deal.
According to the agreement, the newly formed company will receive a substantial amount of liquid cryptocurrency, estimated to be between $450 and $500 million. Additionally, US Bitcoin Corp. has committed to constructing various cryptocurrency mining facilities, including the development of a new 100-megawatt plant.
While Celsius and a committee of its creditors have accepted the bid, it is important to note that regulatory approval is still required to complete the acquisition process. The finalization of the acquisition hinges on obtaining the necessary approvals from relevant regulatory authorities.
Celsius Network filed for bankruptcy on July 13, 2022. Celsius froze withdrawals in June 2022, citing “extreme market conditions.” The company’s bankruptcy filing is the latest sign of trouble in the cryptocurrency market. It was later revealed that the troubled crypto lender was having liquidity issues. 2022 witnessed the collapse of notable crypto giants, including Terra, Celsius, and the FTX, to name a few.