The Fahrenheit Group has won a tender to manage the assets of the bankrupt crypto lending platform Celsius Network.
Earlier today, the Celsius auction concluded and Fahrenheit was selected as the winning bid. The BRIC bid was selected as the backup bid. The Committee appreciates the efforts of Celsius and all bidders for their efforts, which generated significant value for Celsius users.
— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) May 25, 2023
The consortium was formed by venture capital firms Arrington Capital and Proof Group, mining company US Bitcoin Corp, as well as individual investors Steven Kokinos (former head of Algorand) and Ravi Kaz.
According to the filing, the group will create a new public company with the assets of Celsius, wholly owned by the platform’s creditors.
Fahrenheit will distribute approximately $500 million worth of liquid digital currencies among them. The established enterprise will take over the management of Celsius’ alternative investments, loan portfolio and mining business.
“We are delighted that our competitive auction has had a positive outcome for our clients. Most notably, hundreds of millions of dollars in savings from reduced management fees and increased distribution of liquid cryptocurrency to Celsius customers,” said Board Select Committee members David Bars and Alan Carr.
Fahrenheit’s annual fee will be $20 million under a five-year deal. US Bitcoin will have $15 million to manage the mining business.
The company will gain control over 121,800 ASIC miners. After connecting the devices to the network, the total hashrate of the company will reach approximately 12.2 EH / s.
US Bitcoin has also pledged to complete a 100 MW infrastructure to accommodate the Celsius installations.
The company previously took the opportunity to take control of three mining data centers following Compute North’s bankruptcy in September 2022. US Bitcoin is in the process of merging with Canada’s Hut 8 Mining.
The consortium became the reserve winner of the tender for the assets of Celsius BRICwhich was formed by Gemini, VanEck, Global X Digital and Plutus Lending.
Recall, according to a deleted tweet of the founder of Arrington Capital, Michael Arrington, the Coinbase bitcoin exchange intended to join Fahrenheit.
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