Prior to the final bid deadline for Celsius Network scheduled for April 25 in New York, the bankrupt firm received additional bids from two conglomerates, consisting of Gemini and Coinbase.
The court documents show that the first conglomerate is Fahrenheit, LLC, which is owned by a venture capital firm Arrington Capital. Notably, Proof Group Capital Management, former Algorand CEO Steven Kokinos, and investment banker Ravi Kaza are also participants of the group.
Meanwhile, Michael Arrington owner of Arrington Capital named Coinbase as one of the companies supporting the Fahrenheit coalition in a since-deleted tweet on April 22.
Additionally, the second party bidding for assets of Celsius Network consists of members of the Blockchain Recovery Investment Committee, which is supported by Gemini, fund manager VanEck, Bitcoin mining outfit Global X Digital, and Plutus Lending.
Gemini and Coinbase Compete with Novawulf
Interestingly, both Gemini and Coinbase crypto exchanges will be competing with Novawulf Digital Management firm for assets of the defunct Celsius.
The proposal from NovuWulf calls for the formation of a new business. The firm highlighted that smaller creditors would get 70% of their money back, while larger creditors would get tokenized shares in the new company NovaWulf would run. Additionally, NovaWulf announced that it would invest between $45 million and $55 million in the new business.
Interestingly, it appears Fahrenheit, LLC is tilting in a similar direction with NovaWulf. Michael stated on Twitter that the company has recommended that Celsius’ assets be transferred to a new business.
Celsius Network’s Liabilities
Following the company’s declaration of bankruptcy in July, court documents revealed that the firm had obligations worth over $6.7 billion and assets worth just about $43.9 billion, leaving a huge shortfall in the balance sheet of $2.8 billion.
Celsius Aims to Recover Funds
The primary aim of Celsius Network’ auction of its assets is to generate cash to pay off its creditors and settle any outstanding debts. Another aim of auctioning off assets is to maximize the value of their assets.Â
Furthermore, through the auction, the company can generate some cash to distribute to its shareholders, even if the amount is likely to be less than what they invested. Remarkably, a previous report has hinted that customers of the defunct firm may receive up to 72.5% of their crypto deposit back.
Celsius Network Plan to Reimburse Customers
The platform has declared that it is considering issuing a new coin in order to reimburse creditors following its failure. This new coin is said to be part of Celsius’s intention to restructure and operate as a whole new platform once the bankruptcy process is through.Â
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