{"id":139858,"date":"2023-05-25T10:03:27","date_gmt":"2023-05-25T10:03:27","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=139858"},"modified":"2023-05-25T12:23:15","modified_gmt":"2023-05-25T12:23:15","slug":"celsius-chooses-fahrenheits-bid-for-bankruptcy-exit","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/celsius-chooses-fahrenheits-bid-for-bankruptcy-exit\/","title":{"rendered":"Celsius Chooses Fahrenheit’s Bid for Bankruptcy Exit"},"content":{"rendered":"
In a recent report<\/a> from Reuters, crypto lender Celsius Network LLC announced its decision to accept Fahrenheit’s proposal as the winning bid for its bankruptcy exit strategy<\/strong>. This development marks a significant step towards Celsius’s recovery and the management of a new entity to be owned by its creditors.<\/p>\n According to court filings<\/a>, the cryptocurrency<\/a> consortium Fahrenheit emerged victorious in acquiring the insolvent crypto lender, securing Celsius’s assets valued at around $2 billion<\/strong>. As part of the acquisition, Fahrenheit, backed by blockchain-based venture capital firm Arrington Capital, will provide the necessary capital, management expertise, and technology to establish and operate the newly formed company, NewCo.<\/p>\n Celsius stated that the agreement with Fahrenheit entails substantial cryptocurrency holdings worth an estimated $450 million to $500 million, which will be transferred to NewCo. Furthermore, US Bitcoin Corp. plans to construct state-of-the-art crypto mining facilities, including a 100-megawatt plant, to bolster the new company’s operations.<\/p>\n Under the proposed plan, Celsius account holders will become the sole owners of the new equity in NewCo.<\/strong> The company also disclosed that NewCo will be overseen by a new board of directors, a majority of whom will be appointed by the creditors.<\/p>\n <\/p>\n In the coming weeks, Celsius intends to negotiate and file a plan sponsor agreement with Fahrenheit,<\/strong> as well as a backup plan sponsor agreement with the Blockchain Recovery Investment Consortium (BRIC), affiliated with Gemini Trust, owned by the Winklevoss twins.<\/p>\nFahrenheit wins the Celsius bid<\/h2>\n
A Path to bankruptcy exit<\/h2>\n