Goldman Sachs Wants to Buy Celsius Assets at $2B
- Goldman Sachs is weighing interest and wants commitments from Web3 crypto funds and funds dedicated to buying distressed assets.
Goldman Sachs is making moves to purchase the distressed assets of the ailing crypto lender, Celsius. This is according to two people familiar with the matter. Reportedly, the investment bank wants to collaborate with investors to raise $2b to make the purchase.
If the fundraising succeeds, Goldman Sachs will purchase the crypto lender’s assets at steep discounts. However, buying these assets at steep discounts can only happen if Celsius files for bankruptcy.
The inside sources also said Goldman Sachs is weighing interest and wants commitments from Web3 crypto funds and funds dedicated to buying distressed assets. It would also welcome commitments from traditional financial institutions with sufficient cash.
Participants in the fundraising efforts would be in charge of managing the purchased assets. It is worth noting that most of these assets would be digital currencies. Goldman Sachs has neither released any official statement regarding the matter nor responded to media requests for comments.
Goldman Sachs Taps on Celsius to Further Crypto Adoption
Since the crypto lending protocol disabled withdrawal or account swaps a few weeks ago, the company has been up and down to solve the issue.
Recently, Celsius has hired professional lawyers to help in its insolvency issues.
Additionally Celsius has enlisted the help of Citibank (a global investment bank) to provide possible financial solutions to its issues. Part of the responsibility of Citibank for Celsius would be to help the crypto lender assess a bailout offer from Nexo (a rival crypto lender).
However, rumors are that the lending protocol is likely to move the bankruptcy process. Remember, Celsius is holding customers’ Capital hostage. In fact, the company’s Bitcoin position was once close to liquidation. Nonetheless, with the Bitcoin price stabilized at around $20k for the past week. The lending company can use the time to restructure its future course.
Neither Citibank nor Akin Gump has yet to comment on or respond to comment requests.
You’d recall that Celsius announced on June 12 that it has temporarily suspended withdrawals from its platform due to an “extreme market situation.” Their announcement further aggravated the market conditions. Bitcoin price traded at less than $20,000 briefly following the announcement.
As of last month, the company has lent over $8B to clients. It also has $12B worth of assets under its management. Following a business valuation of $3.25B, Celsius generated $750M from a fundraising round last year. A notable investor was Caisse De Depot Et Placement Du Quebec (CDPQ), Canada’s second-biggest pension fund.
The co-founder of 100x (a derivatives trading platform), Arthur Hayes, doesn’t believe the details of this fundraising rumor. He said it is too early for Goldman Sachs to make fundraising plans to purchase Celsius’ assets.
Hayes explained that even if it were true, Goldman Sachs wouldn’t put its money at risk. Instead, it would gather a group of investors and help structure a deal for the purchase for a ‘fat’ fee. According to him, that’s what advisory banks like Goldman Sachs do.