According to some sources, Goldman Sachs is attempting to collect $2 billion from investors to acquire distressed assets from the insolvent crypto lender Celsius.
The proposed deal would let investors acquire Celsius’ assets at potentially substantial discounts in the case of a bankruptcy filing.
Goldman Sachs seems to be measuring interest and requesting pledges from Web3 crypto funds, funds specialised in distressed assets, and conventional financial institutions with large cash reserves. The assets, most likely bitcoins sold at a discount, would then be handled by participants in the fundraising effort.
Goldman Sachs seems to have an eye on Celsius. Image: Chris Hondros/Getty Images
Alvarez & Marsal was hired by Celsius, as the Wall Street Journal reported on Friday afternoon.
Goldman Sachs declined to comment in response to a request.
In May this year, Celsius loaned more than $8 billion to customers and had $12 billion in assets under management. On June 12, the company unexpectedly declared it would cease withdrawals from its platform, citing “extreme market conditions.” The announcement aggravated the situation, momentarily driving the price of bitcoin below $20,000.
In addition to employing Alvarez & Marsal, Celsius has hired restructuring counsel from Akin Gump Strauss Hauer & Feld. Celsius has also retained Citigroup to advise on potential alternatives, including evaluating an offer from rival crypto lender Nexo.
Citigroup (C) and Akin Gump have advised Celsius to file for bankruptcy. Citigroup was unwilling to comment, whereas Akin Gump did not immediately reply to a request for comment.
Celsius received $750 million from investors last year, including Canada’s second-largest pension fund, Caisse de dépôt et placement du Québec (CDPQ), valuing the firm at $3.25 billion.