A recent development in the cryptocurrency sphere involves Apollo Global Management, a major player in the world of distressed investing, which oversees more than half a trillion dollars in assets. According to an inside source, Apollo is reportedly participating in a bid to acquire the troubled cryptocurrency lender, Celsius. The company has been actively courting potential buyers, and if true, Apollo’s involvement represents a significant incursion from traditional finance giants into the realm of digital assets.
Celsius, which has not yet announced the winner of the auction for its acquisition, reportedly plans to mine Bitcoin (BTC), participate in Ethereum (ETH) staking, and issue blockchain-based security tokens representing ownership interests in itself after a successful restructuring. The sale process was recently paused without a new date revealed, creating a sense of anticipation for the future of the company.
The primary bidder that Apollo is said to have chosen as its investment vehicle is NovaWulf. If NovaWulf emerges as the winner, investors in their bid will receive a tiered management fee alongside an incentive fee connected to the restructured Celsius’ net asset value (NAV). However, details of Apollo’s deal with NovaWulf have not been disclosed in available documentation.
In order to facilitate the issuance and trading of equity tokens associated with the new Celsius, NovaWulf has partnered with Provenance Blockchain, which utilizes the Cosmos blockchain as its underlying ledger. Boasting over $7 billion in total locked value (TVL), Provenance represents the largest trove of on-chain assets outside of Ethereum, according to its CEO, Morgan McKenney.
To further strengthen this partnership and support the tokenized securities, Provenance’s sibling fintech company, Figure, will provide the necessary infrastructure. Interestingly, Apollo is already working with Figure on tokenized assets, cementing their foothold in this emerging space.
While it’s true that the cryptocurrency industry has experienced significant setbacks in recent years, with falling prices and various scandals leading to numerous high-profile bankruptcies, Apollo’s potential involvement with Celsius signals a changing tide. As a dominant player in the credit sector, their interest reflects an increasing acknowledgement of the potential and value inherent in blockchain technology, cryptocurrencies, and digital assets.
As McKenney, CEO of Provenance Blockchain, points out in an interview, Apollo’s involvement is a testament to the firm’s position as a “flagship” in the industry, leading traditional finance giants into the uncharted territory of the digital asset realm. With their expertise in managing credit and distressed investments, the collaboration with Celsius could represent a critical turning point for both the cryptocurrency world and traditional finance.