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HomeTechnologyCrypto lending firm Nexo aims to buyout rival Celsius collateralized loan portfolio

Crypto lending firm Nexo aims to buyout rival Celsius collateralized loan portfolio

Nexo, a crypto lending firm, plans to buy the assets of struggling rival Celsius collateralized loan portfolio claiming to be in a good financial position to do so.

The recent tweet on June 13 via Nexo official Twitter account, indicates that Nexo is planning to offer Celsius Network a buyout on its certain assets, however, it is yet to make a direct offer. The firm stated in the same Twitter thread that it has sufficient finances despite the current bearish trend of the crypto market. In the thread, Nexo explicitly referenced a buyout of Celsius collateralized loan portfolio, which is currently in jeopardy as a result of the staked Ethereum depegging.

Nexo, a crypto lending firm in the digital finance industry, currently manages the digital assets of 4М+ users across 200 nations. Nexo has made an acquisition approach to Celsius, one of its rivals in the digital lending industry after its recent market crash.

Amid the fears that the Celsius (CEL) token will follow the footsteps of TerraUST and Luna and crash to $0 in the near future. On June 12, Celsius Network made the announcement of halting users withdrawal, transfer and swap services between accounts owing to extreme market conditions resulting in the nearly 70% fall in the price of CEL token. According to Coinmarketcap, the price of CEL declined over 50% in the last 24 hours. CEL is trading at $0.1918 at the time of writing.

Nexo stated that the Celsius buyout plan is in an attempt to support the digital asset ecosystem amid the market downturn. It has tried to reach out to the Celsius team on June 12 to offer support as a gesture of goodwill. Celsius, on the other hand, is said to have denied the assistance. Nexo also stated that any ideas made to Celsius would be made public.

In the same thread, Nexo also announced that all Nexo products, including Earn, Borrow, Exchange, and the Nexo Card, are operational. It emphasised that all deposits and withdrawals are operating as expected, allowing investors to make the appropriate arrangements during the recent market dip.

Nexo token price has declined by over 25% in the last 24 hours. As a result of the bearish trend, the token price has fallen below $1 as a result of the bearish trend. Nexo is trading at $0.761 per token at the time of writing. 

Nexo has given Celsius the buyout offer in the form of a letter of intent. As previously stated,

“Nexo, its partners, and affiliates could readily acquire from Celsius part or all qualifying, outstanding collateralized loan receivables secured by their corresponding pledged cryptocurrency collateral, subject to Nexo’s risk management and collateral requirements.”

In relation to the bid expiration, the letter noted,

“The offer is valid until 4:30 a.m. UTC on June 20, unless accepted or rejected by the seller, or withdrawn by the buyer prior to that time.”

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Vaishali Goel
Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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