The once-bankrupt crypto lender, Celsius Network, now has a possible chance for revival, with major players from Wall Street fighting for a piece of it. It has been almost a year since the lender filed for bankruptcy in New York, and now two groups backed by Apollo Global Management and senior executives at Fortress Investment Group are engaged in a fierce bidding battle, vying for control over the remains of Celsius.
Both of the investor groups aim to restart Celsius’ business but under a new management team. Earlier this month, news surfaced about Apollo’s intentions to acquire Celsius through a partnership between crypto investment firm NovaWolf and Apollo itself. Furthermore, Celsius had named NovaWolf among the companies expressing interest in purchasing the bankrupt lender.
Though the process has been ongoing, it seems that the bidding war is reaching its peak. As per unnamed sources cited by the Wall Street Journal, each group proposed to invest around $50 million into Celsius to revive the company, transforming it into a publicly-traded entity that would be primarily owned by its creditors.
The bidders have also attempted to attract more cash by encouraging additional investors to join the consortium, promising them millions of dollars if they do so. The winner of this heated competition could be announced in the near future, according to Celsius’ bankruptcy lawyer, Ross Kwasteniet, speaking at a recent court hearing.
Such interest from heavyweights has not gone unnoticed. Tom Braziel, a partner at one of Celsius’ major creditors, 507 Capital, remarked that it’s encouraging to witness serious firms stepping up with significant financial support and working towards striking deals.
Nevertheless, an important aspect of this bidding war is the proposed plan by investors to amplify Celsius’ crypto mining activities, while leaving out the resumption of the lending business. For the time being, the primary focus is on restarting the company with an emphasis on its crypto mining operations. This offers a glimpse into the strategic direction that the company could take under new management, pivoting away from its previous focus on lending as it dabbles in the ever-growing market of digital assets.
Source: Cryptonews
