Fahrenheit recently won the bidding process to acquire Celsius Network’s assets after insolvency. According to the court filings, Fahrenheit has gained access to 2 billion dollars worth of Celsius Network assets. The filings also mention that the group will gain Celsius’ loan portfolio mining unit, staked cryptocurrencies, and similar investments. Fahrenheit must make a 10 million dollar deposit in three days to wrap up the agreement.
The lengthy auction process conducted by Fahrenheit involved a group of buyers from miner US Bitcoin Corporation and venture capital firm Arrington Capital. The backup position is secured by BIRC (Blockchain Recovery Investment Consortium), including GXD Labs and Van Eck Absolute Return Advisers Corporation.
Despite the initial favoring, the rival bidder NovaWulf ultimately lost the race. Now, the agreement says that the Fahrenheit group will get a massive amount of cryptocurrencies. This liquid crypto horde is expected to be valued between 450 million dollars and 500 million dollars.
In addition, the US Bitcoin Corporation will also be building cryptocurrency mining facilities. The enterprise will include a next-gen 100-megawatt plant.
Although Celsius Network and related creditors have primarily accepted the bid, the process still requires regulatory approval. Martin Glenn, the bankruptcy court judge, has already hinted at regulatory roadblocks surrounding Celsius’s sale.
In previous ventures, Binance US found itself terminating the acquisition of Voyager’s assets worth 1 billion dollars. The transaction was terminated because federal officials opposed the sale amid the uncertain regulatory scenario in the US.
That is why Celsius aims to negotiate and file a public plan sponsor agreement with the Fahrenheit group. Moreover, Celsius will file a backup plan with BRIC, a disclosure agreement, and a revised Chapter 11 plan. Seeing how seamless the process has been going, Fahrenheit and Celsius are expected to avoid a situation like Binance and Voyager.