Celsius, Once On The Brink of Collapse, Scores Billion-Dollar Lifeline Via Auction

Cryptocurrency consortium Fahrenheit won the auction for bankrupt lender Celsius Network CEL/USD.

The consortium is required to secure the deal with a $10 million deposit within the next three days, as per the court documents filed early Thursday morning.

Previous evaluations had estimated Celsius Network’s assets to be worth around $2 billion.

Fahrenheit’s successful bid includes the procurement of Celsius’s institutional loan portfolio, staked cryptocurrencies, mining unit, and a selection of alternative investments.

See Also: Did You Invest In Celsius? 5 Reasons You Lost Your Money

Venture firm Arrington Capital and US Bitcoin Corp. are a part of Fahrenheit.

The Blockchain Recovery Investment Consortium, which comprises Van Eck Absolute Return Advisers Corporation and GXD Labs LLC, was selected as a standby option.

NovaWulf, a once-favored bidder, ultimately missed out.

The newly formed company will receive liquid cryptocurrency worth between $450 and $500 million. Additionally, US Bitcoin Corp is slated to develop a range of cryptocurrency mining facilities, including a new 100-megawatt plant.

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Regulatory approval is still needed to officially close the deal.

Bankruptcy Court Judge Martin Glenn had previously cautioned about potential “regulatory roadblocks” that might hamper the sale, citing similar difficulties that had interrupted another lender’s acquisition.

A federal appeal blocked Binance.US from purchasing bankrupt crypto lender Voyager’s $1 billion in assets in April.

Celsius Network sought bankruptcy protection in July of the previous year after a dramatic drop in cryptocurrency values led to a surge in withdrawals akin to a bank run, revealing severe liquidity issues within the platform. 

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