Celsius approves Fahrenheit’s offer and will distribute tokens

Celsius Alex Mashinsky

Alex Mashinsky, CEO and founder of Celsius, at PBWS 2022 – RoyalsBlue.com ©

The bankrupt crypto lender Celsius accepted theoffer the best bidder for theacquisition of its activitiesincluding mining. The consortium Fahrenheit wins the setting. The exit plan from chapter 11 go to continues.

This is now practically a given. Celsius will not meet a fate comparable to that of its former competitor, Voyager. The crypto lender founded by Alex Mashinsky, who resigned in September 2022 and is being sued, has found its buyer.

Celsius announced this Thursday that the auction to find a buyer has finally been won by Fahrenheit. The identity of the future winner was no longer a mystery. With a bid several hundred million euros higher than the previous one, the consortium had all the cards in its hand to beat the proposal from NovaWulf.

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Crypto-knowledgeable buyers

Confirmed. Fahrenheit will manage the new entity owned by Celsius’ creditors. Its assets will be transferred to NewCo under new executive management. The completion of this transaction has other effects.

The auction enables the distribution of hundreds of millions of dollars of more liquid crypto-currencies to customers and reduces the proposed management fees by hundreds of millions of dollars compared to the stalking horse bid,” reads a statement.

It should be pointed out that behind Fahrenheit are several leading entities and entrepreneurs in the crypto ecosystem. The group is made up of Bitcoin Corp, Arrington Capital, Proof GroupSteven Kokinos and Ravi Kaza.

Crypto distribution to account holders

Steven Kokinos is notably the former CEO of Algorand, as well as the co-founder and president of Fuze. Ravi Kaza is an investment banker who has been involved in the crypto sector for several years. The consortium and its players will take control of Celsius.

Fahrenheit will provide the capital, management team and technology necessary to create and operate the new company (“NewCo”) contemplated in the Offer, which will be implemented in accordance with a Chapter 11 Plan (the “Plan”).”

The new bosses will therefore steer the execution of the Plan. The Plan provides for “a distribution significant liquid crypto-currency from Celsius to account holders.” NewCo, the new company, also inherits other assets.

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Options for a way out of bankruptcy

This includes Celsius’s “illiquid assets, including Celsius’s institutional loan portfolio, mining business and alternative investments for the benefit of account holders.”

Fahrenheit’s offer will also result in the reactivation of Celsius’s Bitcoin mining business, which has been inactive since the bankruptcy. The former crypto lender now has “excellent options” for its chapter 11 release. To achieve this, further steps remain to be taken.

In the coming weeks, Celsius intends to negotiate and publicly file a plan sponsorship agreement with Fahrenheit, a relief plan sponsorship agreement with BRIC, a revised chapter 11 plan and an information statement, all of which remain subject to bankruptcy court approval.”

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