London based cryptocurrency lender, Nexo, aims to acquire cash crunched fellow crypto lender, Vauld.
This comes on the heels after Vauld, suspended withdrawals, trading and deposits on its platform, citing volatile market conditions and financial difficulties facing key business partners. Amidst a market wide meltdown, the music seems to have stopped for many crypto companies. The biggest crypto firms including crypto exchanges like Coinbase, Crypto.com and crypto lending platform BlockFI have announced mass lay-offs.
In the meantime, we have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect.
— Vauld (@VauldOfficial) July 4, 2022
How will the Deal Help Vauld?
According to reports, Nexo, said it would buy up to 100 per cent of Vauld and restructure its future operations. The crypto lender revealed that it has signed a term sheet with Coinbase backed cryptocurrency lender, Vauld, delineating terms and conditions for the acquisition. Nexo hopes to provide immediate assistance and alleviate withdrawal limitations put in place on Vauld’s platform. In a statement, Nexo, wrote,
“Upon successful completion of the transaction, Nexo plans to acquire up to 100% of Vauld and reorganize its future operations with the aim to accelerate its deeper presence in Asia.”
Darshan Bathija, Vauld’s co-founder and CEO, said that he was pleased to see a ray of hope that Vauld had found a potential path forward. He expressed,
“Operating under the Nexo umbrella puts us instantly in a position of strength to continue the execution of our fiduciary obligations to our customers and at the same time to execute upon both companies’ ambitious roadmaps, regardless of the market conditions.”
The completion of this transaction is pending due diligence – which both teams are working on as we speak.
Vauld has strived to deliver long term value to all customers, and we believe coming under the @Nexo umbrella will significantly help achieve this.
— Darshan Bathija (@darshanbathija) July 5, 2022
Nexo Plans to Stabilize the Crypto Industry
Amid the market downturn, Nexo, is looking forward to help distressed crypto companies hit by cascading cryptocurrency valuations. In a recent blog post, Nexo has revelead that the company is working with top Wall Street institutions to advise on potential acqusitions. Antoni Trenchev, co-founder and Managing Partner of Nexo, stated,
“We have been approached by multiple Wall Street banks and decided to officially explore the opportunities for acquisition to help stabilize our nascent industry.”
After what appears to be the insolvency of @CelsiusNetwork and mindful of the repercussions for their retail investors & the crypto community, Nexo has extended a formal offer to acquire qualifying assets of @CelsiusNetwork after their withdrawal freeze. https://t.co/JFtKTHRLcY
— Nexo (@Nexo) June 13, 2022
Last week, Nexo, proposed a buyout of Celsius, after the crypto lending platform said it was freezing withdrawals and transfers because of hightened market volatility. As a matter of fact, Nexo has reached out to several companies with certain aspects of lending operations in current need of liquidity and offered to alleviate financial pressure through a number of different options. Nexo wrote,
“Nexo is poised to play a key role in the upcoming consolidation of the blockchain space. Our hope is that we are able to protect as many investors as possible and maintain people’s faith in crypto as our industry is only just beginning to unfold its true potential.”