On Thursday, Celsius Network LLC, a crypto lender , announced that it had selected Fahrenheit’s proposal as the chosen bid to oversee a newly formed entity. The creditors would control this entity, ultimately leading the company out of bankruptcy.
Fahrenheit, a consortium that includes blockchain-based venture capital firm Arrington Capital, will contribute the necessary capital, management team, and technology to establish and operate the new company, referred to as NewCo, according to Celsius.
Celsius stated that under the proposed plan, all account holders would have full ownership of the new equity in NewCo. In addition, Celsius further noted that a fresh board of directors would govern NewCo, with the creditors appointing a majority of its members.
New Jersey-based Crypto lender Celsius also confirmed that it has secured a backup bid with the Blockchain Recovery Investment Consortium (BRIC), a holding company affiliated with the Winklevoss-owned Gemini Trust.
Celsius filed for Chapter 11 protection in July, one of several crypto lenders to go bankrupt following the rapid growth of the industry during the COVID pandemic.
The company kicked off an auction on April 22, seeking to find a buyer who could guide its crypto lending and bitcoin mining businesses out of bankruptcy.
It initially planned to accept NovaWulf’s bid, but took more time to develop additional bids from Fahrenheit and BRIC, a holding company affiliated with the Winklevoss-owned Gemini Trust.