Two major cryptocurrency exchanges, Coinbase and Gemini, are set to participate in an auction to bid for the assets of Celsius Network, a bankrupt crypto lender. The auction will take place on April 25th, 2023, at the New York offices of Kirkland and Ellis, the law firm handling Celsius’ bankruptcy.
Two Consortiums Compete to Take Over Celsius
Two consortiums, Fahrenheit and Blockchain Recovery Investment Committee, are competing to take over Celsius. Fahrenheit is backed by blockchain-based venture capital firm Arrington Capital and its founder Michael Arrington, alongside US Data Mining Group.
The other consortium, Blockchain Recovery Investment Committee, is supported by Gemini Trust, which is co-owned by the Winklevoss twins, fund manager Van Eck, Bitcoin mining firm Global X Digital, and Plutus Lending.
NovaWulf Joins the Auction
NovaWulf, the stalking horse bidder, will also participate in the auction. NovaWulf’s proposed plan will give Celsius general Earn creditors, who deposited less than $5,000 on the platform, about 70% of their funds in liquid crypto assets.
Crypto Exchanges Likely to Win Auction
Crypto experts predict that one of the two consortiums is most likely to win the auction because they are established crypto operators who can extract more value by operating instead of liquidating Celsius’ assets, unlike NovaWulf. Celsius’ assets include holdings in several venture capital-backed startups, a loan book, and many crypto mining machines that could generate immediate returns for their new owner.
Coinbase and Gemini’s Involvement
Coinbase and Gemini’s participation in the auction has not been officially confirmed, but Arrington tweeted about Coinbase’s involvement in the bidding process. However, Arrington deleted the tweet for unknown reasons, and Coinbase did not comment on their participation in the auction.
Growing Interest in Cryptocurrency Industry
The competition to acquire Celsius’ assets demonstrates the growing interest in the cryptocurrency industry and its growth potential. As more traditional financial institutions begin to enter the crypto space, established players like Coinbase and Gemini are looking to expand their offerings and strengthen their position in the market.