According to a company representative, San Francisco-based Ripple Labs, a blockchain payments startup currently engaged in a high-profile legal dispute with the U.S. Securities and Exchange Commission, is interested in acquiring some of the assets of the collapsed cryptocurrency lender Celsius Network.
Ripple has never completed any significant transactions—according to the company, it was valued at about $15 billion after a private share buyback in January, despite the fact that industry valuations have significantly decreased as a result of the recent collapse in cryptocurrency prices, which also contributed to the demise of Celsius and other cryptocurrency firms. According to a report released by the firm in July, Ripple's overall revenue of its cryptocurrency XRP, net of acquisitions, were $408.9 million in the second quarter as opposed to $273.27 million in the first quarter.
A spokesman for Ripple said that the company has been looking into ways to competitively expand during this protracted crypto winter. The company is “constantly seeking for M&A options to strategically scale the company,” the spokesperson added.
By submitting a request to be represented at the current Celsius bankruptcy hearing, Ripple reportedly demonstrated its interest. As a result of the application's approval earlier this month, Ripple now has direct knowledge of the firm's existing liabilities and how it can profit from a partnership or buyout.
When it stopped accepting withdrawals in June, Celsius received an acquisition offer from Nexo, a more liquid lender. However, the company remained silent and did not respond to the offer at the time. Along with Ripple, Goldman Sachs is another significant company that has expressed interest in Celsius Network.
Ripple will be able to increase consumer acceptance of its core products, such as the On-Demand Liquidity based on XRP, thanks to this collaboration. In addition, the payment provider has pledged millions of dollars to support climate-conscious enterprises and the “modernization of carbon markets.”
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