Ripple Labs—the blockchain payments company behind XRP—may be interested in buying assets related to Celsius, the bankrupt crypto lending company.
Company spokesperson said Reuters That Ripple is “interested in learning about Celcius and its assets, and whether any may be relevant to our business.” When asked whether Ripple plans to acquire Celsius outright, the spokesperson declined to say. The Celsius platform’s native utility token CEL rose 23% on Wednesday following the news.
Celsius Freeze your users assets Due to “extreme market conditions” in June, it was followed by some other crypto firms such as Sailor And coinflex, it so quickly paid its outstanding loans on various DeFi loans, reclaimed its collateral, and filed for bankruptcy one month later.
The filing revealed that the lending firm’s assets include cash, cryptocurrency, the company’s own Celsius (CEL) token, and various digital assets within its custodial accounts, loans, and bitcoin mining business.
However, when weighed against the firm’s liabilities, the company still reported a loss of $1.19 billion on its balance sheet, and the prospect of the company’s creditors getting any of their money back looks dire.
The filing shows that Ripple was not one of Celsius’ major creditors. Still, the firm submitted filings last week seeking representation in the lender’s bankruptcy proceedings.
Ripple did not immediately respond decryptrequests for further comments on a potential takeover deal, although a spokesperson told Reuters That the company is “actively exploring M&A opportunities to grow the company strategically.”
Ripple was valued at $15 billion in January after buying back the stock from its Series C growth in December 2019. According to a report from the company in July, it sold $408 million worth of XRP spanning April to June – a good deal over $273.27 million. It sold during the last quarter.