Goldman Sachs Looks to Raise $2 Billion to Buy Celsius Network's Assets

[Hydrogen]

-- Goldman Sachs Group Inc. is looking to raise $2 billion from investors to buy up distressed assets from Celsius Network LLC, CoinDesk reported, citing two people familiar with the matter.

-- The proposed deal would allow investors to buy up Celsius' assets at potentially big discounts in the event of a bankruptcy filing, the report said. The Wall Street Journal reported earlier Friday that the crypto lending platform hired restructuring consultants from advisory firm Alvarez & Marsal to advise on a possible bankruptcy filing. The company also engaged law firm Akin Gump Strauss Hauer & Feld LLP to advise on possible restructuring options, the Journal reported earlier this month.

-- Goldman Sachs appears to be gauging interesting and soliciting commitments from Web3 cryptocurrency funds, funds specializing in distressed assets and traditional financial institutions with cash on hand, CoinDesk reported.

-- Celsius, which said it had $11.8 billion in assets as of May and has 1.7 million users, froze withdrawals, swaps and transfers earlier this month because of extreme market volatility. The value of its assets has fallen from about $25 billion in October, the Journal reported.

https://www.morningstar.com/news/dow-jones/202206247121/goldman-sachs-looks-to-raise-2-billion-to-buy-celsius-networks-assets-coindesk-says

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It was rumored that goldman sachs bought poloniex crypto exchange through a subsidiary called circle years ago. And now it seems they're acquiring celsius assets at extreme discounts.

Goldman sachs stock jumped almost 10% hours before news of their celsius acquisitions hit markets.

With $11.8 billion in celsius assets to be sold off. Its too bad the sum of money involved is too large to be transacted in a public auction. There could have been some amazing bargains to be had.

Goldman also seems to support web3. Perhaps there are useful conclusions which can be drawn from that connection.

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[Don Pedro Dinero]

-- Goldman Sachs Group Inc. is looking to raise $2 billion from investors to buy up distressed assets from Celsius Network LLC, CoinDesk reported, citing two people familiar with the matter.

-- The proposed deal would allow investors to buy up Celsius' assets at potentially big discounts in the event of a bankruptcy filing,

I don't know how it works in the US exactly, but it is normal that if a company goes bankrupt, there may be several bidders for its assets, and in this case at a discount, as the news indicates. I say this because:

1) The normal thing is that if Celsius goes bankrupt, those who have funds there are going to lose a large part of them, if not all of them.

2) I don't think Goldman Sachs is the only one bidding.

[jackg]

They should probably increase the size of public auctions they can do to shift all these (if they're investable tokens, but I guess they could end up with less if Celsius has a lot of some assets like luna). $2bn-$11bn is quite a big jump still - I'd imagine that'd be $6bn at least at a public auction...


Is there a reason funds aren't going straight to the creditors too? I've been trying to search around online for a bit and don't seem to be able to find anything.

[avikz]

Ine centralized entity is purchasing another centralized entity. That's not the news here! The news is that a banking giant is purchasing a crypto business at a dirt cheap price. That's the significance of this news here.

It's unfortunate that around 12 billion dollars of assets will be taken over by a banking entity in just 2 billion dollars. It's unfortunate to see such direct impact of the crypto price volatility. Price drop usually means a DCA opportunity for the retail investors. But for businesses, the impact is negative.