- The investment bank’s plans to purchase the crypto lender’s assets through investor commitments are likely to be successful.
- Arthur Hayes believes Goldman Sachs won’t put its money into the deal.
As major liquidations continue on the Celsius network platform, it is clear that the crypto lender is in an awful phase. Multiple sources claim that investment banking giant Goldman Sachs has started planning to purchase Celsius assets.
Goldman Sachs leads investor group’s purchase of Celsius assets
According to sources, Goldman Sachs plans to seek fund commitments from investors to the tune of $2B. The sources added that the leading investment bank is looking to take advantage of Celsius’ situation and buy its assets at heavily discounted prices.
About two weeks ago, Celsius networks released an official statement saying withdrawals are no longer available on the platform. The crypto lender blamed the current market conditions for its action.
A report of the firm last month claimed that Celsius had given out over $8b in loans to multiple clients. Also, the firm manages nearly $12b worth of assets. But the crypto lender has been struggling with liquidity issues following the crypto market downturn.
However, a Coindesk report claimed that Goldman Sachs is considering fund commitment from web3 crypto funds. The report also said the bank is in talks with funds specializing in distressed asset deals. While most of Celsius assets would be cryptos, the buyers would buy them at lower-than-market prices.
There is a catch in this deal – Arthur Hayes
In a twist to the Celsius assets purchase rumors, 100x co-founder, Arthur Hayes, has a contrary opinion about the Goldman Sachs purchase. Hayes claims no one should believe the stories until Goldman Sachs releases an official statement confirming it.
The co-founder of the derivatives explained that it is unlikely that the investment bank would commit its funds to the purchase. He added that Goldman Sachs is likely to get together interested investors and help them with the deal’s structure.
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Any and all “bailouts” should be viewed PR stunts, until actual money is deployed, and actual depositors can withdraw some or all of their funds from insolvent CENTRALISED crypto lenders.
— Arthur Hayes (@CryptoHayes) June 24, 2022
Then, the group of investors would own the purchased assets. However, Goldman Sachs would only receive a fee for its services. Hayes further said that the industry should only express their joy when they can make withdrawals from the Celsius platform again.
He added that this deal’s success would benefit the next crypto bull run. Hayes warned that crypto participants should rejoice about any bailouts as they can be PR stunts. Instead, they should only jubilate when these bailout efforts become successful.
According to him, a partial or complete fund withdrawal from these insolvent crypto lenders would mean the bailouts were not PR stunts. Following Celsius’ liquidity issues, it has sought help from restructuring attorneys from Akin Grump Strauss Hauer law firm and Citigroup investment bank. Inside sources claim that both professionals have advised that the best solution for Celsius is to file for bankruptcy.
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