Apollo Global Management, a leading private credit investor with over half a trillion dollars in assets under management, is reportedly part of a bid alongside crypto investment firm NovaWulf to acquire the bankrupt crypto lender Celsius Network. Other interested parties include Fahrenheit LLC and the Blockchain Investment Recovery Committee.
NovaWulf’s bid for the lender is also supported by a consortium including crypto exchange Gemini Trust. According to a CoinDesk report, Apollo is providing financial backing as a capital partner in NovaWulf’s attempt to acquire Celsius Network, though both companies declined to comment on the matter.
The auction for Celsius Network was paused at the end of April, with the winner yet to be announced. Amid ongoing discussions of these bids, the deadline to submit the disclosure statement has been extended until May 11, 2023.
An investor deck cited by CoinDesk stated that investors backing NovaWulf’s bid would receive a tiered management fee and an incentive fee tied to the restructured Celsius Network’s net asset value (NAV), contingent on NovaWulf winning the auction.
Back in February, NovaWulf partnered with Provenance Blockchain to facilitate the issuance and trading of equity tokens in the new Celsius Network. The deal, in partnership with Figure Technologies, sought to use blockchain technology to reorganize and rescue the lender.
Provenance Blockchain CEO Morgan McKenney lauded Apollo’s involvement and understanding of the credit industry, stating that their participation is leading the industry into the future. In October 2021, Apollo notably began holding crypto assets on behalf of clients through a partnership with digital asset platform Anchorage Digital.
The move to participate in the crypto industry by Apollo, one of the world’s largest asset managers, came at a time of retreat for traditional companies due to market crashes, bankruptcies, and various legal and regulatory issues. However, Apollo seems to remain committed to its crypto journey.
In fact, the renowned firm hired former JPMorgan Chase executive Christine Moy earlier this year to lead digital asset strategy and investment decisions in the fields of crypto, blockchain, and Web3.
Although the potential acquisition of Celsius Network by Apollo-backed NovaWulf may bring the lender back into operation, concerns about security and trust in the platform remain. Investors and platform users must weigh the potential benefits against the risks in a rapidly evolving crypto landscape.