Ripple Labs Considers Buying Crypto Lender Celsius’ Assets
Ripple has shown strength despite the current crypto market winter affecting virtually all sectors of the industry. The company has indicated an interest in the assets of bankrupt lender Celsius, as it continues to look for M&A opportunities to scale the firm.
Ripple Acquires About Celsius’s Assets
The San Francisco-based firm is still battling a serious legal case with the US Securities and Exchange Commission (SEC). But it seems it is not perturbed by the legal issues as it continues to expand its operations.
“We are interested in learning about Celsius and its assets, and whether any could be relevant to our business,” a spokesperson for Ripple says. However, it’s not clear whether Ripple will be making a strategic investment or going for an outright acquisition.
Celsius has been in troubled waters over the past few months, which culminated in the company filing for bankruptcy last month. At the time, Celsius listed a $1.9 billion deficit on its balance sheet.
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Last week, Ripple’s lawyers submitted filings to the bankruptcy seeking representation in the proceedings. But the bankruptcy filings submitted earlier by Celsius showed that Ripple is not among Celsius’ major creditors.
Ripple Remains Strong Despite Market’s Challenges
This year has been bumpy for cryptocurrencies, with prices of major assets going back and forth. Bitcoin, the world’s largest crypto asset, has already lost nearly 70% of its all-time value of $69,000 in November. While the crypto market was going through a rough patch, the collapse of the Luna and terraUSD stablecoins further affected the market. Many investors and industry players lost heavily due to the collapse.
Celsius’ bankruptcy filings show that its digital assets include those held in custody accounts, a Bitcoin mining business, loans, crypto assets it had on the ground, bank cash, as well as the company’s CEL token.
Ripple announced in July that the total net sales of its cryptocurrency XRP were $408.9 million in the second quarter of the year. This is far higher than the $273.27 million realized in the first quarter. Ripple has not completed any major deals. The company was valued at about $15 billion before the crypto market crash, which has also affected Celsius and other crypto firms.
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