Wednesday, October 5, 2022

Just In: Ripple Labs tipped to buy Celsius assets

It appears that the firm behind the popular XRP cryptocurrency, Ripple Labs may be lining up a bid to buy the assets of the troubled Celsius network. According to a fresh Reuters report, Ripple is highly interested in buying the now-bankrupt crypto lender’s assets. But so far, neither of the firms has yet issued any statement to corroborate the story.

Is Ripple Labs planning an acquisition?

For a while now, there have been various reports of a potential acquisition of Celsius since it filed for bankruptcy in July. This was after the firm decided to halt all transfers and withdrawals on its platform sometime in June. But while the likes of Goldman Sachs and FTX exchange have been previously linked to the beleaguered Celsius, Ripple Labs may be the latest on the list of potential acquirers. 

Per Reuters report, however, a Ripple spokesperson could only confirm that Celsius’ assets are a point of interest to them. The spokesperson also confirmed that there’s an ongoing consideration of the worth of the assets to Ripple’s ultimate goals. Parts of the statement read:

“We are interested in learning about Celsius and its assets, and whether any could be relevant to our business.”

Again, there was no indication of any kind, regarding whether or not Ripple might be considering an outright acquisition of Celsius.

Celsius’ assets sale plans

After filing for bankruptcy, Celsius revealed that it still has assets that are worth nearly $4.3 billion.  And that, as part of its restructuring plans, it was open to selling its assets. Expectedly, this will give the firm the required financial capacity to fulfil its obligations as well. Especially in terms of its responsibility to retail investors who have their funds tied on the platform. At the time, Celsius said:

“The company will also consider asset sales and third-party investment opportunities to meet financial obligations.”

Summarily, there’s no denying the fact that Ripple’s interest in Celsius assets, albeit now confirmed, spells a possible solution to the firm’s financial situation. 

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