According to reports, Goldman Sachs is eager to raise $2 billion to acquire Celsius assets
The crypto loan startup Celsius Network looks to be on its final legs, and it is rumored that Wall Street titan Goldman Sachs may purchase it.
According to reports, Goldman Sachs is preparing to solicit $2 billion from investors in order to purchase Celsius’s assets in the midst of grave financial difficulties.
According to the sources, the transaction would allow investors to purchase Celsius’ assets at deep discounts in the event that the troubled firm declares bankruptcy. Before restricting withdrawals earlier this month, Celsius had collected over $11 billion in assets under management and had lent customers a total of $8 billion.
As the cryptocurrency market collapsed, Celsius had severe liquidity challenges. According to rumors, Goldman Sachs is soliciting commitments from Web3 cryptocurrency firms as well as established financial institutions with substantial cash reserves. Additionally, the banking titan is in discussions with funds that specialize in troubled assets.
What Does This Mean For Customers Of Celsius?
The majority of Celsius’s assets are low-priced cryptocurrencies that will be handled by the participating investors.
Arthur Hayes, co-founder and former CEO of BitMEX, noted that Goldman Sachs is not investing its own capital in this proposed arrangement.
Please do not think that Goldman Sachs is risking their own capital until they openly state so. “GS is doing what advisory banks do, assembling a group of investors and assisting them in structuring the acquisition of distressed assets for a hefty charge,” he tweeted on Saturday.
According to him, the community should cheer only once the financial behemoth has successfully acquired Celsius’ assets and resumed withdrawals. Creditors regaining a portion of their funds would undoubtedly restore trust and provide rocket fuel for a full-scale cryptocurrency bull run.
Aside from that, users should see any “bailouts” as “PR stunts, until real monies are spent and genuine depositors may withdraw some or all of their cash from insolvent CENTRALISED crypto lenders.”
To say the least, Celsius is perilously close to bankruptcy. As previously revealed by ZyCrypto, the crypto lender recruited restructuring lawyers from Akin Gump Strauss Hauer & Feld LLP. The Wall Street Journal reported on Friday that Celsius had hired more bankruptcy advisors from the advising firm Alvarez & Marsal.
Since ceasing withdrawals, Celsius has provided little specifics. In a release dated 19 June, the company said, “Our goal is stabilizing our cash and operations. This procedure will be lengthy.” The corporation said at the time that it will discontinue hosting Q&A sessions with community members.
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