Celsius Network Bids: Fahrenheit LLC & BRIC
I got a chance to speak with members of Fahrenheit LLC's team today.
HOWDY! So in addition to Novawulf’s Bid, there are officially two new qualified bidders on Celsius Network’s assets:
1. Fahrenheit LLC (whose equity is owned, directly or indirectly, by Arrington Capital, U.S. Data Mining Group, Inc. d/b/a U.S. Bitcoin Corp., Proof Group Capital Management LLC, Steven Kokinos, and Ravi Kaza)
2. The Blockchain Recovery Investment Committee (which includes Van Eck Absolute Return Advisers Corporation, Global X Digital, LLC, or an affiliate thereof including GXD Labs LLC, Plutus Lending LLC d/b/a Abra, and Gemini Trust Company, LLC)
I got a chance to chat briefly with a couple members of the Fahrenheit LLC team yesterday so I’ll share a few quick notes from our conversation:
Apparently, the structure of Fahrenheit LLC’s bid is similar to that of Novawulf’s, but focuses on lowering management fees, listing the company in the NASDAQ to increase liquidity for creditors who want to sell (subject to legal and accounting), and bringing together a proven group of operators to build out the NewCo.
Coinbase has signed on to distribute liquid crypto back to creditors (I’m a fan of Coinbase, so I like this).
Fahrenheit would distribute a roughly similar percentage of liquid crypto back to creditors as Novawulf would, OR could potentially distribute more liquid crypto to depending on loan settlement results. Allegedly, Novawulf plans to hold $1B of creditors’ ETH on loans servicing regardless of how many creditors accept the settlement. Fahrenheit, however, is open to distributing more ETH back to creditors if not as many people accept the settlement, since less collateral would be necessary to back up those loans. In other words, creditors could receive more ETH back under Fahrenheit’s plan.
Fahrenheit would also take more equity in the NewCo than cash so that incentives are better aligned with those of creditors.
FAHRENHEIT LLC KEY POINTS (copy & pasted from a message):
1) Stronger specialized crypto-native team to manage diverse assets/businesses and extract maximum value —> Lower execution risk
2) List NewCo security on a more liquid traditional exchange like NASDAQ to help achieve higher expected sustainable valuation and liquidity (subject to legal and accounting)
3) Pursue new businesses for a diverse portfolio of asset-adjacent, cash-generating crypto assets to drive long-term value realization.
4) Lower management and incentive fees increase value for NewCo holders —> Better economics
Anyway, these are just some notes from my brief conversations earlier today. Obviously this information came directly from Fahrenheit and paints the plan in a positive light. I do not have ALL of the details of this plan and would like to remain unbiased about which plan I prefer. Just wanted to shoot these notes out to fellow creditors since a live auction will be held on April 25, 2023 2pm EST. To attend, email CelsiusAuction@kirkland.com.
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