Nexo proposes to purchase crypto assets from struggling competitor Celsius


Nexo asserts that it is in a solid position to acquire the assets of its struggling competitor, Celsius.

Today, Nexo tweeted that it is “in a strong liquidity and equity position to buy any outstanding qualifying assets of Celsius, namely their collateralized loan portfolio.”

Celsius is suffering under pressure as a result of the crypto market decline, which has caused bitcoin to go below $25,000 Today, Celsius abruptly halted withdrawals, swaps, and account transfers, claiming “extreme market circumstances.” It did not specify a date for the reinstatement of these services.

Nexo has presented Celsius with a formal letter of intent including an offer. The letter states, “Subject to Nexo’s risk management and collateral criteria, Nexo, its partners, and affiliates might quickly buy from Celsius a portion or all qualifying, outstanding collateralized loan receivables guaranteed by their corresponding pledged bitcoin collateral.”

The offer is valid until 20 June at 4:30 a.m. UTC unless the seller accepts, rejects, or the buyer withdraws it prior to that time.

The Block has contacted Nexo and Celsius for comment and will update this article if we get a response. Kiril Nikolov, the DeFi strategist at Nexo, told The Block that “for the last few months, the Nexo team has been in the process of comprehensively de-risking its DeFi exposure” to explain why Nexo is in a solid financial and liquidity position to acquire Celsius’s qualifying assets.

Nikolov said that there are no client funds with exposure to DeFi, but Nexo does have staked ether (stETH) that has no “significant” impact on capacity.

“The Nexo team is in a good financial and liquidity position, having been bootstrapped and never having raised external funding with a significant equity cushion, as shown by our real-time reserves audit,” he said.

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