• 22 June, 2024
News

The Celcius bid will be “fair market price, no discount,” hints FTX CEO

FTX founder and CEO Sam Bankman-Fried reveal how his company plans to acquire Celsius’ assets.

The remarks follow FTX US’s auction purchase of bankrupt crypto lender Voyager Digital’s assets for $1.3 billion last week, as well as a recent report that FTX was considering a bid for Celsius’ assets.

BnkToTheFuture founder Simon Dixon revealed that FTX is “financing at a $32 billion valuation” to acquire Celsius assets. In response to the tweet, Sam Bankman-Fried  clarified that his firm’s bid is determined at “fair market price, no discounts.”

Following a recent Bloomberg report, FTX’s acquisition of Celsius has resurfaced in the headlines. Citing “a person familiar with his deal-making,” the report says Bankman-Fried is considering buying the assets of the bankrupt lending firm Celsius.

In his Tweet, Bankman-Fried commented : 

[The] goal isn’t to make money buying assets at cents on the dollar, it’s to pay $1 on the $1 and get the $1 back to customers. If we were to get involved in Celsius, it would be the same.

However, the CEO of FTX did not correct the determined bid for Celsius at this time. As a result, the fact that FTX raised $ 32 billion to purchase Celsius remains unknown.

Until now, the platform only stated that the FTX US platform “will enable customers to trade and store cryptocurrency after the conclusion of the company’s chapter 11 cases.”

Since the collapse of the stablecoin TerraUSD, the industry has been hit hard by escalating problems. This year, FTX and its sister company Alameda Research invested in and issued millions of dollars to support firms on the verge of bankruptcy. 

Last week, FTX secured the winning bid for the assets of bankrupt crypto lender Voyager Digital, with the transaction reportedly valued at $1.4 billion. In July, the firm also invested $250 million in the struggling lending firm BlockFi.

Several regulators have objected to Celsius selling off its stablecoin holdings. The Department of Justice has also objected to the firm’s motion to allow withdrawals to certain customers until the examiner report is completed.

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