- Celsius selects Fahrenheit, LLC to manage NewCo, a new entity owned entirely by Celsius’ creditors, as part of its bankruptcy proceedings.
- The Chapter 11 plan ensures account holders get a significant distribution of Celsius’ liquid cryptocurrency and ownership of the new equity in NewCo.
- The deal aims to reactivate Celsius’ dormant mining operations, with gratitude shown to Simon Dixon for his bid that increased creditors’ recovery by hundreds of millions.
In a decisive turn in its bankruptcy proceedings, Celsius Network LLC has selected Fahrenheit, LLC to be the victorious bidder. This follows a competitive court-supervised auction, where Fahrenheit emerged as the chosen manager of a new entity, set to be entirely owned by Celsius’ creditors.
Fahrenheit, a consortium comprised of US Bitcoin Corp., Arrington Capital, Proof Group, Steven Kokinos, and Ravi Kaza, will take the reins and infuse the necessary capital, management acumen, and technological expertise to steer the new company known as NewCo.
One of the primary highlights of the associated Chapter 11 plan is a substantial distribution of Celsius’ liquid cryptocurrency to its account holders, an event slated to happen as soon as practically possible after the plan’s effective date. Additionally, the plan lays out provisions for settlements with the Custody and Withhold groups, illustrating a comprehensive approach to recompense.
Further, the Chapter 11 plan also proposes the establishment of NewCo. This new, publicly traded company will manage a range of Celsius’ illiquid assets, including its institutional loan portfolio, mining business, and alternative investments. Notably, Celsius’ account holders will retain 100% ownership of the new equity in NewCo, although this is subject to dilution by the equity allocated to Fahrenheit as part of their management fees.
The deal also includes plans to revitalize Celsius’ currently dormant mining operations, with the winning bid offering conditions that would enable immediate reactivation of the firm’s mining rigs. NewCo will also be tasked with the gradual expansion of this mining business, potentially providing an additional revenue stream for the company.
In the meantime, the crypto community has shown an outpouring of gratitude towards Simon Dixon, whose “stalking horse” bid is believed to have increased the recovery for creditors by hundreds of millions. Twitter users have been expressing their heartfelt thanks and deep appreciation for Dixon’s work.
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