Goldman Sachs is reportedly seeking investors to form a Web3 fund to buy assets from Celsius.
The multinational investment bank is raising $2 billion from a wide range of funds to take advantage of a potential discount on Celsius’ crypto assets.
If Celsius were to declare bankruptcy, it could be forced to quickly sell its assets to pay off its creditors. The stock exchange has reportedly already been advised to file for bankruptcy by Citigroup and Akin Group.
The news was originally reported by Coin Desk, which cites people familiar with the matter as a source of information.
The struggling exchange is said to have over $11 billion in assets in May 2022, meaning if Goldman Sachs could buy all of Celsius’s assets, it would pay just 20 cents on the dollar. It’s unclear at this time whether the group is looking to take over Celsius as a going concern or strip and sell its assets.
Celsius also received an unsolicited offer from rival exchange Nexo on June 12, which was not accepted. However, Coin Desk reported that Citigroup was brought in to assess the deal. Nexo has over 4 million users compared to 1.7 million for Celisus who claim
“Nexo is in a strong liquidity and capital position to easily acquire all of Celsius’ remaining eligible assets, primarily their secured loan portfolio.”
The proposal to buy Celsius’ “secured loan portfolio” will likely have a similar objective to any potential offer from Goldman Sachs. Investors who don’t currently have access to their Celsius-held funds might not be enthusiastic about Goldman Sach’s approach.
Upon filing for bankruptcy, a schedule would be created to determine the order in which creditors are paid off. Investors are hoping they will get paid first, but there are no guarantees.
Celsius hired “restructuring lawyers from the law firm Akin Gump Strauss Hauer & Feld LLP to advise them on possible solutions to its growing financial problems.” The move could signal the end of Celsius, who has remained silent on the matter for June 20.