Goldman Sachs is in the process of acquiring Celsius Assets and wants to raise $2 billion. However why the financial giant investing in a sinking ship like Celsius? This is the hundred dollar question!
Crypto lender Celsius Network is in its death throes and a major liquidations process is taking place on the platform. Sources state that Goldman Sachs hopes to raise $2 billion from investors to buy the troubled assets of Celsius Networks.
Since Celsius is in a distressed state, Goldman Sachs hope to acquire Celsius at a throw away price. The banking giant will capitalize upon the benefits it will accrue after buying the ailing unit. Celsius has already freezed withdrawals on its platforms. As per reports the ailing lender has lend $8 billion to its clients and $12 billion in assets under management.
Goldman Sachs Grabs The Oppurtunity
The current meltdown in the crypto sector has exterminated numerous players and Celsius is its latest casualty. However Goldman Sachs is more interested in Web 3 crypto funds and it is also in negotiations with entities which provide funds for controlling distressed assets. The troubled assets of Celsius Networks would mostly be cryptocurrencies sold on the cheap.
What Goldman Sachs is doing the usual what advisory banks do, that is get the investors together and aid them to take over companies under distress and in the process make a fat profit in form of consultancy fees.
Goldman Sachs Act A PR Stunt
In totality all bailouts are PR stunts and it is only when the investors are able to withdraw their money one can say that the ailing company is once again alive and kicking. If this really happens it will restore confidence in the market and once again usher in the Bull Run.
Amidst the crisis Celsius Networks has asked the attorneys from the law firm Akin Gump Strauss Hauer & Feld for its debt restructuring and Investment banking giant Citigroup is also advising Celsius in these matters.