Goldman Sachs is reportedly attempting to acquire $2 billion in cash from investors so that it may purchase distressed assets from bitcoin lender Celsius, according to a person with knowledge of the situation. These people have a solid understanding of the particulars of the situation that we are in. These individuals have a solid grasp of the information at hand.
If Celsius declares bankruptcy, its assets will be made available to anyone interested in purchasing them for a price that is a fraction of their current market worth.
According to an insider who is familiar with the situation and has knowledge of Goldman Sachs’s actions, the company is conducting interest assessments and making commitment requests to traditional financial institutions, Web3 crypto firms, and distressed asset funds that have large amounts of capital on hand.
In addition, more investors are reportedly being sought after, as reported by a source at Goldman Sachs. Participants in the fundraising effort would be held responsible for the upkeep of the assets, which would almost probably be discounted bitcoins due to the nature of the assets. The management of the monies will probably be the responsibility of the participant fundraisers.
According to a report that was published in the Celsius division of the Wall Street Journal on Friday afternoon, the company has retained the services of the restructuring firm Alvarez & Marsal.
A request for comment from Goldman Sachs was not met with a response.
As of the beginning of this year in May, Celsius has more than $8 billion in cash on hand and more than $12 billion in assets under management. In a statement sent to its clients on June 12, the company explained the cause for the platform withdrawal restriction as “severe market circumstances.” Following the release of new information, the price of bitcoin dropped to a level lower than $20,000 for a short amount of time before recovering to its previous level.
At the beginning of this month, the Wall Street Journal published an article stating that Celsius had hired restructuring counsel from the law firms of Alvarez & Marsal and Akin Gump Strauss Hauer & Feld. According to an article that was published in The Block, Celcius has also partnered up with an international financial institution known as Citigroup to provide guidance and ideas on a broad variety of additional possibilities. This post also provides an in-depth analysis of Nexo, an alternative bitcoin lending company, for your review and consideration.
According to persons who are familiar with the matter, Citigroup (C) and Akin Gump (G) are both believed to have suggested that Celsius apply for bankruptcy protection as a potential course of action. Citigroup has made it quite clear that it will not be providing any more commentary on the matter at hand. We did not get a response promptly to our request for Akin Gump’s thoughts and suggestions.
When the deal was finally completed in 2017, Celsius had a value of 3.25 billion dollars on the market. This project received an investment of $750 million from the CDPQ, which is the second-largest pension fund in Canada.