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Coinbase and Gemini set to bid on Celsius network’s assets
Celsius’ initial bidder, NovaWulf Digital Management, now faces competition from veteran crypto firms. However, Celsius may end up paying up to $20 million in break fees to NovaWulf if it decides to go with a different buyer.
- The upcoming live auction of the Celsius Network will see participation from the likes of Coinbase and Gemini.
- The new bidders have expressed plans to keep the bankrupt crypto lender operational rather than going for liquidation.
Celsius Network’s auction slated for 25 April 2023, will see participation from the likes of Coinbase and Gemini. The top crypto exchanges are reportedly backing two separate consortia of investors to bid on the bankrupt crypto lender.
The new investor groups will bid against NovaWulf Digital Management, which emerged as the initial buyer of Celsius last year.
Celsius may have to pay $20M to NovaWulf Digital
According to a report by Bloomberg, TechCrunch founder Michael Arrington is leading a new consortium of investors called Fahrenheit LLC, to acquire Celsius’ assets in tomorrow’s (25 April) auction.
This investor group includes U.S. Data Mining Group Inc, Proof Group Capital Management LLC, Ravi Kaza, former Algorand CEO Steven Kokinos, and Coinbase.
A second consortium of investors, backed by the Gemini Trust Company, includes Van Eck Absolute Return Advisers Corporation, Global X Digital, and Plutus Lending LLC.
As per a court filing made by Celsius Network’s law firm Kirkland & Ellis, the live auction will take place on 25 April at 2 pm in the latter’s Manhattan office.
People familiar with the matter believe that the new bidders have a better chance of winning the deal to acquire the bankrupt law firm, given their backing by crypto heavyweights like Coinbase and Gemini.
Should any of the new investors win the auction, the initial bidder, NovaWulf Digital Management, may stand to gain up to $20 million from Celsius in the form of break fees.
Michael Arrington’s Fahrenheit group plans to keep Celsius operational, instead of liquidating the crypto lender.
He aims to form a new company that “will own substantial bitcoin mining assets, retail and institutional loans, a variety of crypto core assets, and a venture capital portfolio.”
