- Celsius Network’s bankruptcy auction is nearing its end with a possible conclusion within one week.
- A consortium of investors that includes Coinbase has emerged as the top bidder for the bankrupt crypto lender’s assets.
- The bids submitted in the auction have exceeded the initial bid from NovaWulf by hundreds of millions of dollars.
Celsius Network is reportedly planning to conclude its ongoing bankruptcy auction within days. The bankruptcy auction, which commenced on April 22, 2023, has seen participation from multiple groups of investors backed by Wall Street Heavyweights. The auction process has reportedly attracted competitive bids from investors that are looking to restart the firm under new management.
Coinbase’s Consortium Poised To Win The Auction For Celsius’ Assets
A consortium of investors led by TechCrunch founder Michael Arrington’s Arrington Capital is reportedly poised to win the bankruptcy auction for Celsius’ assets. The consortium, Fahrenheit LLC, includes Coinbase, U.S. Data Mining Group Inc, Proof Group Capital Management LLC, Ravi Kaza, and former Algorand CEO Steven Kokinos. Fahrenheit LLC faced competition from the Blockchain Recovery Investment Committee, which counts Gemini Trust Company, Global X Digital, and Plutus Lending LLC among its backers.
Ross Kwasteniet, an attorney representing Celsius Network, told bankruptcy Judge Michael Wiles that while the auction process has taken longer than expected, it has attracted highly competitive bids from the participating investors. The bids from Fahrenheit and the Blockchain Recovery Investment Committee have reportedly exceeded the initial bid from NovaWulf LLC by “hundreds of millions of dollars.”. Kwasteniet further revealed that the crypto lender plans to conclude the auction “within a week.”. The competitive bids for Celsius’ assets will ultimately provide more value to its creditors and customers who have been stranded since July last year.
According to a report by the Wall Street Journal, Wall Street giant Apollo Global Management is backing NovaWulf’s bid to acquire Celsius’ assets. This consortium will compete against Arrington’s Fahrenheit, which is backed by senior executives at Fortress Investment Group. People familiar with the matter revealed that each proposal would contribute roughly $50 million to help Celsius resume its operations and guide it out of bankruptcy.