Fahrenheit Is Now Leds The Celsius Bankruptcy Auction
- Fahrenheit, a consortium led by blockchain-based venture capital company Arrington Capital, leads the auction for insolvent lender Celsius.
- The new offers are “hundreds of millions of dollars” greater than NovaWulf’s first bid.
According to a Reuters report, the consortium Fahrenheit, which comprises venture capital firm Arrington Capital and miner U.S. Bitcoin Inc, is the top bidder in the auction for insolvent lender Celsius’s $2 billion in assets.
Celsius attorney Ross Kwasteniet told United States Bankruptcy Judge Martin Glenn that the auction took longer than anticipated but was very competitive. According to him, the new offers are “hundreds of millions of dollars” greater than the first proposal made by NovaWulf LLC, a digital asset investment business.
The initial bidder, NovaWulf, an investment entity created by the team behind bitcoin miner TeraWulf, set the auction conditions.
According to court records, the assets include Celsius’s mining operation, loan portfolio, staked cryptocurrencies, and other alternative investments.
Arrington Capital, U.S. Data Mining Group, investment company Proof Group Capital Management, former Algogrand CEO Steven Kokinos, and investment banker Ravi Kaza are among the investors in Fahrneheit. It is legally recognized as a limited liability business.
Celsius intends to pick between the Fahrenheit and NovaWulf proposals since both provide a method to maintain Celsius’s loan and bitcoin mining operations. Celsius has not set a date for final proposals, but Kwasteniet expects the auction to complete within a week.
BRIC’s proposal, which would solely protect the mining industry, will act as a backup bidder if the Fahrenheit or NovaWulf bids are rejected by regulators.
Kwasteniet believes Celsius will not suffer the same fate as Voyager Digital, a crypto lending startup forced to liquidate when regulatory worries thwarted Binance.US’s effort to purchase it.
In a now-deleted tweet, Michael Arrington, founder of the synonymous VC company, indicated Coinbase is also interested in the proposal. Another consortium, consisting of Van Eck Absolute Return Advisers Corporation, decentralized finance business Global X Digital, and Gemini Trust Company, submitted a proposal.
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