{"id":328361,"date":"2023-05-25T13:02:57","date_gmt":"2023-05-25T12:02:57","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=328361"},"modified":"2023-05-25T13:02:57","modified_gmt":"2023-05-25T12:02:57","slug":"fahrenheit-wins-auction-for-celsius-assets","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/fahrenheit-wins-auction-for-celsius-assets\/","title":{"rendered":"Fahrenheit wins auction for Celsius&#8217; assets"},"content":{"rendered":"<p>Bankrupt crypto lender Celsius Network <a href=\"https:\/\/www.businesswire.com\/news\/home\/20230525005382\/en\/Celsius-Announces-Fahrenheit-LLC-as-Winning-Bidder-to-Manage-New-Entity-to-Be-Owned-by-Celsius-Creditors\">announced<\/a> today that crypto consortium Fahrenheit has won in the court\u2011approved auction process to sell its assets.<\/p>\n<p>In a May 25 statement, Celsius said Fahrenheit would provide the capital, management team, and technology required to successfully establish and operate a new company, NewCo, as stated in its bid under its Chapter 11 plan.<\/p>\n<p>Speaking about the deal, members of the Special Committee of the Board, David Barse and Alan Carr, said:<\/p>\n<blockquote><p>&#8220;[The] competitive auction process produced a positive result for customers, including, most prominently, hundreds of millions of dollars in lower management fee savings and increased liquid cryptocurrency distributions to Celsius\u2019 customers.&#8221;<\/p><\/blockquote>\n<p>The Fahrenheit group comprises US Bitcoin Corp, Arrington Capital, Proof Group, Steven Kokinos, and Ravi Kaza.<\/p>\n<h2>Celsius' creditors to own 100% of NewCo<\/h2>\n<p>NewCo's assets include Celsius's institutional loan portfolio, staked cryptocurrencies, mining unit, DeFi cryptocurrency assets, and $500 million in liquid digital assets, according to a May 25 court <a href=\"https:\/\/cases.stretto.com\/public\/x191\/11749\/PLEADINGS\/1174905252380000000034.pdf\">filing<\/a>.<\/p>\n<blockquote><p>&#8220;Celsius\u2019 account holders will own 100% of the new equity in NewCo (subject to dilution by the equity to be distributed to Fahrenheit as management fees). NewCo will be overseen by a new Board of Directors, a majority of which will be appointed by creditors.&#8221;<\/p><\/blockquote>\n<p>Meanwhile, the new company will be led by Steven Kokinos, who will serve as the Chief Executive Officer, while Joel Block will serve as the Chief Financial Officer.<\/p>\n<h2>Mining unit<\/h2>\n<p>Celsius said Fahrenheit's bid provided attractive offers to restart its mining rigs, which are currently inactive, and for NewCo to build its mining business over time.<\/p>\n<p>The court filing showed that the bankrupt firm's mining unit would be managed by US Bitcoin, which would further develop and operate a 100-megawatt Bitcoin (<a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">BTC<\/a>) mining facility.<\/p>\n<p>Additionally, the company secured a backup bid with the Blockchain Recovery Investment Consortium. This consortium includes Van Eck Absolute Return Advisers Corporation and GXD Labs LLC. If required, the backup bid would help to create a publicly traded mining business in which Celsius creditors would receive 100% of the equity interests.<\/p>\n<h2>Deal is still subject to regulatory approval<\/h2>\n<p>While Celsius and its official committee of unsecured creditors have approved the deal, the court filing stated that it was still subject to bankruptcy court approval. Furthermore, NewCo must also obtain all the required regulatory permission for its operations.<\/p>\n<p>Several crypto stakeholders have <a href=\"https:\/\/cryptoslate.com\/ripple-ceo-expects-court-ruling-on-secs-case-in-weeks\/\">consistently highlighted<\/a> how the unfavorable regulatory environment negatively impacts their businesses. In April, crypto exchange Binance.US abruptly <a href=\"https:\/\/cryptoslate.com\/binance-us-backs-out-of-voyager-asset-purchase-deal\/\">withdrew<\/a> from a deal.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bankrupt crypto lender Celsius Network announced today that crypto consortium Fahrenheit has won in the court\u2011approved auction process to sell its assets. In a May 25 statement, Celsius said Fahrenheit would provide the capital, management team, and technology required to successfully establish and operate a new company, NewCo, as stated in its bid under its [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":328397,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77901,77968,2376],"tags":[77137,78565],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Fahrenheit wins auction for Celsius&#039; assets<\/title>\n<meta name=\"description\" content=\"Celsius said Fahrenheit&#039;s bid provided attractive offers to energize its mining rigs and for NewCo to build its mining business over time.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/fahrenheit-wins-auction-for-celsius-assets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fahrenheit wins auction for Celsius&#039; assets\" \/>\n<meta property=\"og:description\" content=\"Celsius said Fahrenheit&#039;s bid provided attractive offers to energize its mining rigs and for NewCo to build its mining business over time.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/fahrenheit-wins-auction-for-celsius-assets\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-25T12:02:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/05\/celcius-fahrenheit-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/fahrenheit-wins-auction-for-celsius-assets\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/fahrenheit-wins-auction-for-celsius-assets\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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