Goldman Sachs Leading Investor Group to Buy Celsius Assets
Goldman Sachs ready to raise $2 billion to purchase Celsius
In case the Cryptocurrency lender defaults, the Wall Street business is looking for $2 billion in investor pledges to purchase distressed assets at severe discounts. According to two persons with knowledge of the situation,
Goldman Sachs is attempting to acquire $2 billion from investors to purchase risky assets from struggling crypto lender, Celsius. In the event that Celsius filed for bankruptcy, the proposed transaction would enable investors to purchase its assets at possible significant discounts, according to the sources. According to a person familiar with the matter, Goldman Sachs appears to be assessing interest and requesting pledges from Web3 crypto funds, funds that specialize in distressed assets, and conventional financial institutions with plenty of cash on hand. The participants in the fundraising effort would then probably handle the assets, which would probably be the cheaply to be sold cryptocurrency. Alvarez & Marsal, a restructuring advising firm, has been hired by Celsius, according to a Friday afternoon Wall Street Journal story. A request for comment from Goldman Sachs was not answered.
In a surprise announcement on June 12, Celsius, which as of May this year had more than $8 billion lent to clients and $12 billion in assets under management, said it would no longer allow withdrawals from its platform due to “extreme market conditions.” These circumstances were made worse by the announcement, which momentarily caused bitcoin to trade below $20,000.The Wall Street Journal reported earlier this month that Celsius has also hired restructuring lawyers from the law firm Akin Gump Strauss Hauer & Feld in addition to Alvarez & Marsal. According to The Block, Celsius has also engaged the assistance of global investment firm Citigroup to offer advice on potential solutions, including a review of a proposal from competing cryptocurrency lender Nexo. According to persons with knowledge of the situation, Celsius has received bankruptcy filing recommendations from both Citigroup © and Akin Gump. Citigroup opted not to respond. An inquiry for comments was not immediately answered by Akin Gump.
Last year, Celsius raised $750 million from investors, including Caisse de dépôt et placement du Québec (CDPQ), Canada’s second-largest pension fund, valuing the company at $3.25 billion.
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