Deel dit artikel
Sign Up
- Back to menuPrices
- Back to menuResearch
- Back to menu
- Back to menu
- Back to menu
- Back to menu
- Back to menuWebinars
Fahrenheit Wins Bid to Acquire Assets of Insolvent Crypto Lender Celsius
The Arrington Capital-backed grouping beat fellow bidder NovaWulf for Celsius’ assets, with the Blockchain Recovery Investment Consortium selected as back-up.
Crypto consortium Fahrenheit has won a bid to acquire insolvent lender Celsius Network, whose assets were previously valued at around $2 billion, according to court filings made early in the hours of Thursday morning.
The group will acquire Celsius’s institutional loan portfolio, staked cryptocurrencies, mining unit and additional alternative investments, and must pay a deposit of $10 million within three days to cement the deal, court filings show.
STORY CONTINUES BELOW
Mis geen enkel verhaal.Abonneer je vandaag nog op de State of Crypto Nieuwsbrief. Bekijk Alle Nieuwsbrieven
Fahrenheit, a consortium of buyers that includes venture capital firm Arrington Capital and miner US Bitcoin Corp, was selected as successful bidder following a lengthy auction process.
The Blockchain Recovery Investment Consortium, which includes Van Eck Absolute Return Advisers Corporation and GXD Labs LLC, was selected as backup, with rival bidder NovaWulf – at one stage the firm favorite – losing out.
Under the terms of the deal, the new company will get between $450 and $500 million in liquid cryptocurrency, and US Bitcoin Corp will construct a range of crypto mining facilities including a new 100 megawatt plant.
The bid, though accepted by Celsius and a committee of its creditors, must still be approved by regulators to finalize the acquisition. Months ago, Bankruptcy Court Judge Martin Glenn warned “regulatory roadblocks” could plague the sale of Celsius much like it thwarted a fellow lender’s acquisition. In April, crypto exchange Binance.US abruptly terminated its purchase of bankrupt crypto lender Voyager’s $1 billion in assets after federal officials appealed the sale, citing the "hostile and uncertain regulatory climate" in the U.S.
Celsius filed for bankruptcy last July after cratering crypto prices triggered a bank-run style rush of withdrawals that exposed the platform’s profound liquidity issues. The exchange’s implosion was a harbinger of things to come for the crypto industry, which later saw the collapse of several other high profile crypto exchanges, lenders and venture capital firms that plunged the industry into a deep winter.
Read more: Fahrenheit Consortium Is Lead Bidder in Bankruptcy Auction for Celsius Assets
Jack Schickler
Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He previously wrote about financial regulation for news site MLex, before which he was a speechwriter and policy analyst at the European Commission and the U.K. Treasury. He doesn’t own any crypto.
Elizabeth Napolitano
Elizabeth Napolitano was a data journalist at CoinDesk, where she reported on topics such as decentralized finance, centralized cryptocurrency exchanges, altcoins, and Web3. She has covered technology and business for NBC News and CBS News. In 2022, she received an ACP national award for breaking news reporting.
Meer voor jou
Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access
A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.
Wat u moet weten:
- Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
- JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
- The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
