Goldman Sachs is currently looking to raise $2 billion to buy out Celsius. This is in case the latter eventually files for bankruptcy. Celsius has been going through a problem with liquidity cases recently.
Bracing Up for a New Opportunity
Goldman Sachs is said to be inviting investors for a Web 3 fund for its Celsius purchase. The investment bank is working with several investors to pull funds. It seeks to take advantage of the possible breakdown of Celsius crypto assets.
If Celsius eventually files for bankruptcy, it might have to sell its assets fast to pay creditors. It is said that Celsius got advised to file for bankruptcy by Akin Group and Citigroup.
The news first broke on Coin Desk. It cited people close to the issue as its source.
Celsius reportedly had more than $11 billion worth of assets as of May 2022. It means that Goldman Sachs would pay 20% on the dollar to buy all the assets. If the investment bank is going to strip and sell Celsius assets is unknown.
Maybe a Better Offer for Celsius Investors
There was another offer of purchase sent to Celsius aside from that of Goldman Sachs. This time, it came unsolicited from Nexo, reportedly, on the 12th of June. The offer was, however, not accepted.
Coin Desk also reported that Citigroup got brought on board to assess the deal. Nexo has more than 4 million users against 1.7 million on Celsius.
Nexo claims that it is in a good equity and liquidity position to buy off Celsius’ remaining assets. This is especially Celsius’ collateralized loans.
Nexo’s offer to buy the collateralized loan portfolio off Celsius might have a similar focus to Goldman Sachs’ offers. There are investors who do not have access to their funds with Celsius. They might not be eager about Goldman Sachs’ offer.
After filing for bankruptcy, Celsius would create a schedule to define how creditors get paid. Investors would hope to get paid first but there is no means of guaranteeing that happens.
Celsius secured the service of lawyers from Akin Gump Strauss Hauer & Feld LLP. They will offer advice on ways to solve its increasing financial challenges. The development might have signaled Celsius’ end as it has not made a statement since the 20th of June.