In a turn of events, cryptocurrency consortium Fahrenheit has emerged triumphant in a high-stakes bidding war, securing the acquisition of insolvent lender Celsius Network. The deal, which includes Celsius’s institutional loan portfolio, staked cryptocurrencies, mining units, and alternative investments, marks a significant development in the crypto industry.
Led by venture capital firm Arrington Capital and miner US Bitcoin Corp, the consortium’s victory is currently one of the trending news in the industry as the acquisition was of the recently bankrupted crypto lender Celsius which resulted in losses for some investors.
After a rigorous auction process, Fahrenheit, backed by Arrington Capital, emerged as the successful bidder, outmaneuvering rival bidders NovaWulf and the Blockchain Recovery Investment Consortium. The Arrington Capital-backed grouping showcased its determination and financial prowess, ultimately winning the bid to acquire Celsius’s assets.
With Celsius’s assets previously valued at approximately $2 billion, this acquisition represents a major coup for Fahrenheit and its partners.
Fahrenheit’s Winning Arsenal And Ambitious Plans
Under the terms of the acquisition, Fahrenheit and its consortium members are set to gain control of Celsius’s institutional loan portfolio and an array of staked cryptocurrencies, mining operations, and alternative investments, according to CoinDesk.
To seal the deal, the consortium must submit a $10 million deposit within three days, solidifying their commitment and intent to move forward. Additionally, the new company formed through the acquisition will receive an amount of liquid cryptocurrency, estimated to be between $450 million and $500 million.
In a move that underlines Fahrenheit’s vision for growth, US Bitcoin Corp, a member of the consortium, will spearhead the construction of new crypto-mining facilities.
The ambitious plan includes the establishment of a cutting-edge 100-megawatt plant, positioning Fahrenheit at the forefront of crypto-mining innovation, and expanding the consortium’s influence in the industry.
Regulatory Hurdles And The Road To Approval
While Celsius and its creditors have accepted the bid, the acquisition still requires regulatory approval before it can be finalized. This crucial step, overseen by regulators, will determine the fate of the deal and its implications for the crypto industry.
The bankruptcy court, aware of potential “regulatory roadblocks,” has cautioned that similar challenges have derailed previous attempts at acquisitions within the sector.
Celsius Network filed for bankruptcy last July. The filing served as a stark reminder of the volatility and challenges faced by the crypto industry. A sharp decline in crypto prices triggered a wave of withdrawals, exposing Celsius’s liquidity issues and culminating in its collapse.
The fallout from Celsius’s implosion rippled through the industry, casting a shadow over other high-profile crypto exchanges, lenders, and venture capital firms, ushering in a period of uncertainty and introspection.
However, following the acquisition of Celsius won by Fahrenheit, the crypto market hasn’t made any significant reaction, instead, the market is currently in a downtrend down by nearly 1% after recording about 2% gain on Wednesday.
Featured image from Unsplash, Chart from TradingView
