Goldman Sachs Leading Investor Group To Buy Crypto Lender Celsius’ Assets

Goldman Sachs tries to further its push into crypto while looking to raise $2 billion to buy up Celsius’s distressed assets.

Bishal Kumar Chanda2 min read
Goldman Sachs Leading Investor Group To Buy Crypto Lender Celsius’ Assets

Goldman Sachs tries to further its push into crypto while looking to raise $2 billion to buy up Celsius’s distressed assets.

As reported by Blockworks, Goldman would use the fundraising to purchase assets from Celsius at a discount. In fact, the buyout will occur even if the crypto lender does not declare bankruptcy.

According to a source, the $2 billion is just an estimate. Also, such a raise would be in line with the big tickets banks typically require to make an investment worthwhile for its backers.

Goldman Sachs appears to be gauging its interest and soliciting commitments from crypto funds. As a result, Celsius’ assets would most likely be sold for cheap and then be managed by participants of the fundraising push.

Moreover, the initiative would make Goldman Sachs more lucrative to traditional financiers looking to profit from investing in cryptocurrencies. Additionally, the company also aims to benefit from equity and refinancing debt from crypto investment firms underwater due to the current market downturn.

Furthermore, Goldman Sachs is already boosting its presence in the crypto industry. For instance, Goldman Sachs is negotiating with the FTX crypto exchange about introducing leveraged derivative transactions.

Celsius Network On The Verge Of Bankruptcy

As of May this year, Celsius had more than $8 billion lent out to clients and $12 billion in assets under management. However, the firm abruptly announced freezing withdrawals from its platform earlier this month, citing “extreme market conditions.”

The announcement signalled the industry-wide liquidity shortage, sending shockwaves throughout the crypto market. The news exacerbated the already bearish crypto market, so much so that it briefly sent Bitcoin’s price below $20,000.

Celsius hires advisors

As reported earlier this month, the crypto lender has hired restructuring attorneys from Akin Gump Strauss Hauer & Feld. Celsius has also enlisted the global investment bank Citigroup to advise on possible solutions.

Like Goldman Sachs, crypto lending firm Nexo has previously extended an offer to buy out Celsius’ distressed assets. However, Citigroup and Akin Gump have both recommended Celsius file for bankruptcy.

Last year, Celsius raised $750 million from investors, valuing the business at $3.25 billion. The funding round saw participation from Canada’s second-largest pension fund, Caisse de dépôt et placement du Québec (CDPQ).

Get deals in your inbox

Get our free, 5 min weekly newsletter. Used by thousands of people to earn more interest on their crypto.

No spam, unsubscribe anytime. Read our Privacy Policy.