Crypto lender has reached a deal to be managed by a group of investors led by TechCrunch founder Michael Arrington
Celsius Network, the bankrupt cryptocurrency lender, has reached an agreement to be managed by Fahrenheit LLC, a group of investors led by TechCrunch founder Michael Arrington.
The sale will be part of Celsius’s chapter 11 exit plan, which will include a distribution of the firm’s liquid cryptocurrency to account holders, settlements with holders of custody accounts, and the creation of a reorganized public company that will manage Celsius’s illiquid assets. Under the plan, Celsius account holders will receive 100% of the…
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Celsius Network, the bankrupt cryptocurrency lender, has reached an agreement to be managed by Fahrenheit LLC, a group of investors led by TechCrunch founder Michael Arrington.
The sale will be part of Celsius’s chapter 11 exit plan, which will include a distribution of the firm’s liquid cryptocurrency to account holders, settlements with holders of custody accounts, and the creation of a reorganized public company that will manage Celsius’s illiquid assets. Under the plan, Celsius account holders will receive 100% of the equity in the reorganized company, subject to dilution that will be distributed to Fahrenheit as management fees.
Fahrenheit is owned by Arrington Capital, U.S. Data Mining Group, Proof Group, Capital Management, Steven Kokinos and Ravi Kaza. As part of the plan, Fahrenheit will purchase $50 million of equity in the new company.
The Fahrenheit team that will assume management of Celsius will be led by Arrington, Kaza, Noah Jessop, and Asher Genoot.
The winning bid will provide “attractive offers for Celsius to immediately energize its mining rigs that are currently inactive,” Celsius said in a statement.
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The deal will distribute hundreds of millions of dollars of additional cryptocurrency compared to a prior stalking-horse bid that set the floor for the auction, Celsius said.
Write to Alexander Gladstone at [email protected]