Coinbase and Gemini Join Bid Race for Celsius Network’s Assets: Report

Coinbase and Gemini, two of the leading cryptocurrency exchange platforms, have reportedly joined the bid race for Celsius Network’s assets. According to recent reports, the two exchanges are among the potential buyers considering acquiring Celsius Network’s business, which includes its crypto wallet, lending, and borrowing functions. This move signals the growing interest of major players in the space to expand their offerings and provide more diversified cryptocurrency services to their customers.

Coinbase and Gemini Among Consortiums Bidding for Celsius Network Assets

Celsius Network is set to be auctioned on Tuesday, April 25, 2023, and leading cryptocurrency exchanges Coinbase and Gemini are reportedly among the two consortiums bidding for the bankrupt crypto lender’s assets. The auction will be held at the New York offices of Kirkland and Ellis, the law firm handling Celsius’ bankruptcy, and will start at 2 pm EPT.

Coinbase is part of one consortium seeking to take over Celsius, called Fahrenheit. The group is backed by blockchain-based venture capital firm Arrington Capital and its founder Michael Arrington, together with US Data Mining Group, Proof Group Capital Management, former Algorand CEO Steven Kokinos, and investment banker Ravi Kaza. Although Arrington mentioned in a Saturday tweet Coinbase’s participation in the bidding process, Coinbase failed to comment.

The second consortium called Blockchain Recovery Investment Committee is backed by Gemini Trust, a company co-owned by the Winklevoss twins, fund manager Van Eck, Bitcoin mining firm Global X Digital, and Plutus Lending.

Both consortiums will participate in the auction alongside asset manager NovaWulf, the stalking horse bidder. However, those familiar with the matter told Fortune that one of the two consortiums is most likely to win the auction as they are backed by well-known crypto entities that could extract more value by operating instead of liquidating the bulk of Celsius’ assets, unlike NovaWulf.

Celsius Network’s 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. NovaWulf’s proposed plan is said to see Celsius general Earn creditors, who deposited less than $5,000 on the platform, receive about 70% of their funds in liquid crypto assets. Users with Earn claims of more than $5,000 will receive liquid crypto assets and tokenized equity on the new Celsius platform wholly owned by the creditors.

In conclusion, Coinbase and Gemini’s participation in the Celsius Network auction is just one of the latest moves showing that established cryptocurrency players are taking advantage of the crypto market’s rise to acquire up-and-coming players. The bidding war that is sure to happen with various players at the table is yet another sign of crypto community’s growth and interest.

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