Fahrenheit Secures the Acquisition Of Celsius Network
As pointed out by recent reports, the famous crypto platform Fahrenheit has remained successful in the battle for the assets formerly possessed by the bankrupt crypto lending company Celsius.
The platform effectively won the fight between diverse companies to acquire the assets of the crypto lender. The contract takes into account the organizational loan portfolio, staked crypto, alternative investments, and mining units of Celsius.
Celsius Accepts Fahrenheit’s Bid for the Acquisition of Its Assets
The respective agreement is considered to be a great development in the world of cryptocurrency. The victory of Fahrenheit is led by the crypto mining platform named US Bitcoin Corp and the venture capital (VC) platform named Arrington Capital.
This triumph is at present categorized among the most discussed topics across the entire crypto market as the contract includes the acquisition of the assets belonging to a recently bankrupted crypto lending firm.
An important thing here is that the bankruptcy of Celsius resulted in financial losses for several investors. Following a rigorous procedure of auction, Fahrenheit – supported by Arrington Capital – turned out to be an effective bidder that outcompeted the competitor bidders including Blockchain Recovery Investment Consortium and NovaWulf.
Fahrenheit expressed that it was determined to acquire the assets of Celsius. In addition to this, the platform also mentioned that it possessed adequate financial prowess for that purpose.
As a result of that, the company effectively won the bid to purchase the assets from the now-bankrupt crypto lending company. Formerly, the value of the assets possessed by Celsius was nearly $2B. In this respect, the acquisition denotes a significant achievement for Fahrenheit.
In line with the terms concerning the acquisition contract, Fahrenheit as well as its consortium participants are prepared to take control of the organizational loan portfolio of Celsius. Apart from that, they are also ready to start administrating a range of staked crypto assets, alternative investments, as well as mining activities, as per the reports.
To lock the respective deal, there is a requirement for the buying party to deposit an amount of up to $10M within 3 days. This move will strengthen the platform’s determination as well as its commitment to move ahead with the contract. Moreover, the latest platform established through the respective acquisition will get a considerable sum of liquidity crypto. The amount would range from $450M to $500M.
In a development that highlights the vision of Fahrenheit for further advancement, a participant of the consortium called Us Bitcoin Corp will carry out the establishment of exclusive facilities dealing with crypto mining. The aggressive strategy takes into account the construction of a cutting-edge power plant of up to 100 megawatts.
The Acquisition Deal Still Requires a Regulatory Green Light to Accomplish
It would place the platform in a great position in the case of innovation in crypto mining as well as expand the impact of the consortium in the market. Although the bid has been accepted by Celsius and the company’s creditors, the acquisition contract still needs regulatory authorization before its finalization.
The respective move is known as an important step as the regulatory agencies will determine the result of the contract as well as its effects on the whole crypto market. The bankruptcy court is aware of the likely regulatory hindrances and has cautioned that analogous challenges have overturned the former initiatives dealing with such acquisitions within the crypto industry.
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