According to reports, Ripple, the blockchain payments business behind the XRP cryptocurrency, is considering the acquisition of Celsius’ assets.
According to a report by Reuters, a representative for Ripple said that the company was “interested in learning about Celsius and its assets” and evaluating if any of them were relevant to their business. The decision was motivated by Ripple’s aim to develop its company despite the obstacles confronting the cryptocurrency sector.
Celsius declared bankruptcy in June, claiming “severe market circumstances” and a $1.2 billion hole in its financial sheet. However, Celsius has been receptive to buyout bids even as it investigates rescue options for creditors who have piled on the pressure.
The chapter 11 bankruptcy papers in June revealed that Celcius has a range of assets, including digital assets kept in custody accounts, loans, the company’s CEL token, Bank cash, and a bitcoin mining operation. Ripple’s attorneys filed a motion to intervene in Celcius’s bankruptcy proceedings last week, even though Ripple is not a key creditor of Celcius.
In light of Ripple’s dispute with the Securities and Exchange Commission, and even though Ripple has not previously engaged in significant acquisitions, several analysts think Celsius’s impressive legal record is the primary reason for Ripple’s growing interest in the company.
“We are aware that Ripple is attempting to acquire Celsius. Why? Celsius pitched itself as a sort of crypto bank, according to Lisa Daly, digital product manager at BlackRock.”