After rumors surrounding a potential reopening of the American exchange FTX, it’s the turn of the cryptocurrency lender Celsius to be subject to such a possibility. Indeed, according to information from the Wall Street Journal, the company would be the subject of great attention from institutional investors.
As a reminder, Celsius Network is a cryptocurrency lending company that has made bankruptcy in July 2022 after encountering serious liquidity problems following the disruptions experienced by the cryptocurrency sector during the spring of 2022.
Therefore, since the beginning of the bankruptcy proceedings, the liquidators of Celsius have been looking for solutions to start reimbursing the company’s injured customers.
The alleged interest of these actors could be an unexpected gift for the creditors of Celsius who would obviously welcome the possibility of obtaining a refund faster than expected.
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Celsius about to be redeemed
Specifically, according to the WSJ article, a bidding war is currently underway between two separate parties to acquire Celsius Network. At first glance, the management company Apollo Global Management, as well as certain senior executives of Fortress Investment Groupwould support the two competing groups in the operation.
Thus, according to concordant sources, Apollo Global Management would have supported NovaWulf while Fortress Investment Group would like to see Fahrenheit Group LLC come out a winner in this financial battle.
It is important to add that on April 30, the official Celsius twitter account explained that it had also started negotiating with another entity called “Blockchain Investment Recovery Committee“.
For the moment, the final price is not known, but a range seems to be emerging since each entity would have offered more or less $50 million to acquire Celsius Network. The two groups reportedly agreed on the eventual intention to restart the business as a “publicly-listed company owned primarily by its creditors”.
Thus, for several weeks, the exchanges seem to be continuous between the various parties to arrive at a final decision, but, according to Celsius’s lawyer, the group having won the auction of the company will be publicly announced soon.
Celsius’ lending business would not be affected
At the time of its cessation of activity, Celsius had put much of its energy into the development of its activity linked to the mining of crypto currencies. This decision was surely life-saving since mining is certainly the reason for the future takeover of the company.
Indeed, the potential buyers of the company have absolutely no intention of reviving Celsius’ loan activity after the takeover is finalized. Thus, unlike other bankrupt companies in the blockchain and crypto currencies, Celsius may have found its salvation in the diversification of its activities.
Finally, Tom Braziel, partner at 507 Capital, one of Celsius’ main creditors, “it’s good to see real companies bringing in money and trying to get deals done.” Now all that is missing is the final signing and the public announcement. Let’s hope for the company’s creditors that these elements intervene quickly.
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