Fahrenheit wins bid to acquire crypto lender Celsius

The court filings reveal that the consortium will obtain Celsius Network’s institutional loan portfolio, staked crypto currencies, mining unit and other alternative investments

Court filings have disclosed that crypto currency consortium Fahrenheit came out as the successful contender to acquire liquidated crypto lender Celsius Network. The acquisition includes Celsius assets earlier valued at nearly $2 billion.

The court filings, submitted during the early hours of May 25, reveal that the consortium will obtain Celsius Network’s institutional loan portfolio, staked crypto currencies, mining unit and other alternative investments. The group is required to make a deposit of $10 million within three days to settle the accord.

Following a lengthy auction procedure, Fahrenheit, a consortium of buyers including venture capital company Arrington Capital and miner U.S. Bitcoin Corp, has been selected as the successful bidder. The Blockchain Recovery Investment Consortium, which comprises Van Eck Absolute Return Advisers Corporation and GXD Labs LLC, secured the backup position, while competitor contender NovaWulf, which was at first favoured, eventually lost out.

According to the agreement, the new firm will receive a considerable amount of liquid crypto currency, estimated to be between $450 million and $500 million. Moreover, U.S. Bitcoin Corp will take up the construction of several crypto mining facilities, including a state-of-the-art 100-MW plant.

While Celsius and its creditors have accepted the bid, regulatory consent is still needed to finalise the acquisition. Bankruptcy Court Judge Martin Glenn had earlier warned about probable “regulatory roadblocks” that could hinder Celsius’s sale, similar to another lender’s acquisition. In a similar circumstance, crypto exchange Binance U.S. stopped its acquisition of Voyager’s $1 billion in assets because of fed officials appealing the sale, pointing to the unresolved regulatory environment in the U.S.