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- 1 Celsius Network LLC., the bidding winner, will establish and operate the company as NewCo.
- 2 Coinbase, Gemini, and Blockchain Recovery Investment were among the significant bidders.
The bankrupt crypto lender Celsius Network LLC will now be acquired by Fahrenheit, a consortium that includes blockchain venture capital firm Arrington Capital. As per the crypto lender, its bid winner will establish and operate the new company(NewCo).
After winning the bidding process, Fahrenheit said it would provide experienced employees, including financial support and technology, to the bankrupt crypto lender to establish it in the market.
On May 25, 2023, Reuters reported that all Celsius account holders would own 100% of new equity in NewCo. It is further noted that the company will be overseen by a newly appointed board of directors by the creditors.
Celsius confirmed securing a backup bid with Blockchain Recovery Investment Consortium(BRIC). BRIC is a holding firm linked to the Winklevoss brothers’ cryptocurrency exchange Gemini.
In July 2022 New Jersey-based crypto lender filed for Chapter-11 bankruptcy; it was one of the lenders who filed for bankruptcy during the global pandemic. Earlier in 2022, the company kicked off the bidding process, seeking enthusiastic bidders who could guide its business out of bankruptcy.
Lead Bidders of Celsius Network LLC Auctions
The first and Foremost bidder who offered to acquire Celsius was NovaWulf. Still, the lender did not initially accept the offer and sought more bidders at agreed terms and conditions.
Earlier on April 24, 2023, TheCoinRepublic reported that leading cryptocurrency exchanges Coinbase and Gemini also participated in the bidding process of Celsius Network.
Proof Group Capital Management also reported their presence at the auction event. In September 2022, Centerview Partners LLC, Celsius’s investment banker, started marketing to identify potential bidders for Celsius’s assets.
Market Scenario Post Covid-19
Traditional and crypto markets struggled during the global pandemic, and dozens of companies filed for bankruptcy. This act of god has stirred the market and created a negative image of cryptocurrency in the eyes of investors and enthusiasts.
Besides Celsius, Three Arrow Capital and Voyagers Digital followed the path of bankruptcy. Post Covid markets were slowly reviving, but some unprecedented failures pushed the sector toward its worst phase.
It is important to note that since the beginning of 2023 digital asset market has shown positive growth, and the leader of all cryptocurrencies, Bitcoin traded at a special price in the first week of 2023.
At the press time, BTC was trading at $26,244.46 with a 24-hours trading volume of $15,786,510,047. Bitcoin jumped over 9% in the quarterly trading session and slipped around 4.50% in the monthly trading session.
Meanwhile, the global capitalization of the crypto market is $1.10 trillion. As per CoinMarketCap, are 620 cryptocurrencies registered in the digital assets market.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
