• Two new consortiums are bidding to acquire Celsius Network’s assets in an auction on April 25th.
• The two consortiums are backed by notable companies such as Coinbase, Gemini, VanEck and Global X Digital.
• NovaWulf Digital Management has already proposed a direct cash contribution of between $45 million to $55 million for the creditors.
Two Consortiums Compete for Celsius Network Assets
The bankrupt crypto lender Celsius Network is scheduled for auction on April 25th in New York with two consortiums competing for its assets. Venture capital firm Arrington Capital, which is owned by blockchain investor Michael Arrington, is backing one of the groups called Fahrenheit. Other participants in this consortium include Proof Group Capital Management, former Algorand CEO Steven Kokinos and investment banker Ravi Kaza. The other bid is from the Blockchain Recovery Investment Committee which includes notable companies like crypto exchange Gemini, fund manager VanEck, Bitcoin (BTC) mining firm Global X Digital and Plutus Lending.
NovaWulf’s Proposal Includes Direct Cash Contribution
The first bidder that sets the bar for others is known as the stalking horse bidder and in this case it’s NovaWulf Digital Management who proposed a direct cash contribution ranging between $45 million to $55 million along with creating a new public platform wholly owned by Celsius creditors. Customers may be able to recover up to 70% of their funds under this proposal.
Fahrenheit Consortium’s Proposal
Michael Arrington mentioned on Twitter (since deleted) that Coinbase was one of the companies backing Fahrenheit and they propose creating a new company „with the sole goal of growing those assets to make stakeholders whole.“ This company would 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.“
Auction A Major Step For Creditors To Recover Funds
The auction is an important step for Celsius customers to recover their funds since it filed Chapter 11 bankruptcy last July 2022 after halting withdrawals due to certain factors like external market conditions and unexpected banking delays limiting liquidity availability.
With these two bids from reputable companies like Coinbase and Gemini at hand as well as NovaWulf’s proposal involving direct cash contribution; customers will have more options available when deciding how they want to move forward with recovering their funds through this upcoming auction on April 25th in New York