Gemini and Coinbase Bid for Celsius Network Auction

An auction is scheduled for April 25 in New York, with reports and court filings indicating that crypto exchanges Gemini and Coinbase are among the companies participating in the bids. 

Court documents reveal that there are two consortiums bidding for Celsius assets. 

The first is Fahrenheit, backed by venture capital firm Arrington Capital, owned by blockchain investor Michael Arrington, and includes other participants such as Proof Group Capital Management, former Algorand CEO Steven Kokinos, and investment banker Ravi Kaza. 

According to a report from Fortune, Arrington mentioned in a since-deleted tweet on April 22 that Coinbase was one of the companies backing the Fahrenheit consortium. 

The second consortium is the Blockchain Recovery Investment Committee, which is backed by crypto exchange Gemini, fund manager VanEck, Bitcoin mining firm Global X Digital, and Plutus Lending. 

Both consortiums are disputing the assets with NovaWulf Digital Management, the stalking horse bidder, which is the first bidder of a bankrupt company that sets the bar for other bidders. NovaWulf’s proposal includes a direct cash contribution in the range of $45 million to $55 million, as well as the creation of a new public platform wholly owned by Celsius creditors. 

Customers are expected to recover up to 70% of their funds under NovaWulf’s proposal. Based on Arrington’s tweets, the Fahrenheit consortium also proposes the creation of a new company with “the sole goal of growing those assets to make stakeholders whole.” 

According to Arrington, the company would be run by a group of proven crypto operators and hold substantial bitcoin mining assets, retail and institutional loans, a variety of crypto core assets, and a venture capital portfolio. 

The auction is a significant step for Celsius’ customers to recover their funds as the company filed for Chapter 11 bankruptcy in July 2022 after halting withdrawals, citing extreme market conditions amid rumours of its insolvency.

Van Tran

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