Celsius Assets May Still Have Value In Them
Ripple Labs has shared its interest in purchasing the assets of Celsius Network. After Celsius recently filed for bankruptcy, a company spokesperson of Ripple Labs spoke to Reuters about the assets and how they can help their company.
The spokesperson says, “We are interested in learning about Celsius and its assets, and whether any could be relevant to our business.” The spokesperson did not comment on Ripple Lab purchasing all of Celsius.
Ripple has grown as a blockchain payment company through the current state of the crypto market. They are “actively looking for M&A opportunities to strategically scale the company,” the spokesperson added in the release.
Celsius Network froze its assets in June, citing “extreme” market conditions as the reason for bankruptcy. Celsius has a $1.19 billion deficit listed on its balance sheet.
More on Ripple Labs Sales, Lawsuit
Ripple Labs is a privately owned company based out of San Francisco. It hasn’t done any many jor deals like potentially purchasing Celsius in the past. Ripple is not among Celsius’ major creditors, Celsius’ bankruptcy filings show. Ripple Labs has submitted filings to the bankruptcy court that will allow them to be represented in the proceedings.
Ripple’s total sales of its cryptocurrency XRP, net of purchases, were $408.9 million in the second quarter of 2022, compared with $273.27 million in the first quarter of 2022, according to a report the company put out in July. The SEC sued Ripple in 2020 over their own controversey.
The lawsuit alleged that Ripple and its current and former chief executives have conducted a $1.3 billion unregistered securities offering by selling XRP. Ripple’s founders created XRP in 2012. Ripple and the executives denied the allegations, claiming that XRP is strictly traded as digital currency.
It is unknown when a potential purchase of Celsius assets would go through for Ripple Labs.