Fahrenheit LLC, a group of bidders led by investment firm Arrington Capital, has won an auction to oversee the assets of Celsius Network LLC, a failed crypto company.
Fahrenheit vied for the rights to operate the remains of Celsius in an auction that was held as part of the lender’s bankruptcy process, beating out rivals including Novawulf Digital Management and a consortium backed by crypto exchange Gemini Trust Co. Other members of the Fahrenheit consortium include crypto miner U.S. Bitcoin Corp., Proof Group, crypto entrepreneur Steven Kokinos and Ravi Kaza. The group will provide capital, a new management team and technology to operate a restructured company based on Celsius’s assets, according to Bloomberg News. The new company will be owned by Celsius’s creditors, and the Fahrenheit group will receive a fee of $35 million a year to manage the business, Bloomberg reported.
According to Bloomberg, the assets include illiquid holdings of cryptocurrencies, a portfolio of institutional loans, private equity and venture capital investments, Celsius’s mining business and $500 million in “liquid cryptocurrency.”