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News

Celsius Auction Heats Up With Coinbase And Gemini Joining The Bidding War

April 24, 2023 - Around 3 mins mins to read

Key Points:

  • Two consortiums bidding for bankrupt Celsius Network’s assets in a New York auction on April 25.
  • The first consortium is Fahrenheit, backed by Arrington Capital, with participants such as Proof Group Capital Management, Steven Kokinos, and Ravi Kaza.
  • The second consortium is the Blockchain Recovery Investment Committee, backed by Gemini, VanEck, Global X Digital, and Plutus Lending.
An auction has been scheduled for the assets of bankrupt crypto lender Celsius Network. The auction is expected to be highly competitive, with two new consortiums participating in the bids.
Celsius Auction Heats Up With Coinbase And Gemini Joining The Bidding War 1

According to reports and court filings, crypto exchanges Gemini and Coinbase are among the companies vying for the assets.

The first consortium, called Fahrenheit, is backed by venture capital firm Arrington Capital, which blockchain investor Michael Arrington owns. Other participants in the consortium are Proof Group Capital Management, former Algorand CEO Steven Kokinos and investment banker Ravi Kaza. On the other hand, the Blockchain Recovery Investment Committee is the second group bidding for Celsius assets, with Gemini as one of its backers. Fund manager VanEck, Bitcoin mining firm Global X Digital and Plutus Lending also support the committee.

Celsius Auction Heats Up With Coinbase And Gemini Joining The Bidding War

Fahrenheit has proposed the creation of a new company “with the sole goal of growing those assets to make stakeholders whole.” According to Michael Arrington, the company would be run by “a group of proven crypto operators” and hold substantial bitcoin mining assets, retail and institutional loans, a variety of crypto core assets, and a venture capital portfolio. Meanwhile, the Blockchain Recovery Investment Committee aims to recover customers’ funds by disputing the assets with NovaWulf Digital Management, the “stalking horse bidder” that sets the bar for the other bidders. NovaWulf’s proposal includes a direct cash contribution in the range of $45 million to $55 million, as well as the creation of a new public platform wholly owned by Celsius creditors. Customers are expected to recover up to 70% of their funds under NovaWulf’s proposal.

The auction is a major milestone for Celsius’ customers, who have been struggling to recover their funds since the company filed for Chapter 11 bankruptcy in July 2022. Although NovaWulf Digital Management has already submitted its proposal, the participation of two new consortiums in the auction has intensified the competition. It remains to be seen which consortium will emerge as the winner and how they will manage the assets to benefit Celsius’ creditors and customers.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Annie

Coincu News

Celsius

Celsius Network

Coinbase

Gemini

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Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
News

Celsius Auction Heats Up With Coinbase And Gemini Joining The Bidding War

Key Points:

  • Two consortiums bidding for bankrupt Celsius Network’s assets in a New York auction on April 25.
  • The first consortium is Fahrenheit, backed by Arrington Capital, with participants such as Proof Group Capital Management, Steven Kokinos, and Ravi Kaza.
  • The second consortium is the Blockchain Recovery Investment Committee, backed by Gemini, VanEck, Global X Digital, and Plutus Lending.
An auction has been scheduled for the assets of bankrupt crypto lender Celsius Network. The auction is expected to be highly competitive, with two new consortiums participating in the bids.
Celsius Auction Heats Up With Coinbase And Gemini Joining The Bidding War 1

According to reports and court filings, crypto exchanges Gemini and Coinbase are among the companies vying for the assets.

The first consortium, called Fahrenheit, is backed by venture capital firm Arrington Capital, which blockchain investor Michael Arrington owns. Other participants in the consortium are Proof Group Capital Management, former Algorand CEO Steven Kokinos and investment banker Ravi Kaza. On the other hand, the Blockchain Recovery Investment Committee is the second group bidding for Celsius assets, with Gemini as one of its backers. Fund manager VanEck, Bitcoin mining firm Global X Digital and Plutus Lending also support the committee.

Celsius Auction Heats Up With Coinbase And Gemini Joining The Bidding War

Fahrenheit has proposed the creation of a new company “with the sole goal of growing those assets to make stakeholders whole.” According to Michael Arrington, the company would be run by “a group of proven crypto operators” and hold substantial bitcoin mining assets, retail and institutional loans, a variety of crypto core assets, and a venture capital portfolio. Meanwhile, the Blockchain Recovery Investment Committee aims to recover customers’ funds by disputing the assets with NovaWulf Digital Management, the “stalking horse bidder” that sets the bar for the other bidders. NovaWulf’s proposal includes a direct cash contribution in the range of $45 million to $55 million, as well as the creation of a new public platform wholly owned by Celsius creditors. Customers are expected to recover up to 70% of their funds under NovaWulf’s proposal.

The auction is a major milestone for Celsius’ customers, who have been struggling to recover their funds since the company filed for Chapter 11 bankruptcy in July 2022. Although NovaWulf Digital Management has already submitted its proposal, the participation of two new consortiums in the auction has intensified the competition. It remains to be seen which consortium will emerge as the winner and how they will manage the assets to benefit Celsius’ creditors and customers.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Annie

Coincu News