Galaxy Digital Holdings Ltd, a financial and investment management firm that operates in the blockchain industry has emerged as the highest bidder for the GK8 platform owned by bankrupt Celsius Network.
Galaxy Digital announced through its website that it won the bid in a sale procedure carried out in conjunction with the asset sale of Celsius Network Chapter 11 bankruptcy. The acquisition is however subject to court clearances and other closing conditions.
Galaxy expects that the acquisition will help expand its reach across different regions and also help Galaxy accelerate its product innovation and development with an addition of about 40 professionals.
As part of the transaction, Galaxy also aims to support GK8’s continuous operations in providing innovative self-custody technology to top-tier financial services firms across the globe, as well as use GK8’s custody solution in GalaxyOne (a new product being offered by Galaxy for institutional investors).
The CEO and Founder of Galaxy, Mike Novogratz commented that the acquisition of GK8 is a critical step in Galaxy’s quest to build a full-service financial platform for digital assets and ensure that Galaxy’s customers will be able to store their digital assets independently from Galaxy without sacrificing versatility and usefulness.
The Bid for Bankrupt Celsius Network
Celsius, a crypto lending platform filed for Chapter 11 bankruptcy protection in the United States after a month of putting customers’ withdrawals to a halt due to insolvency concerns.
According to the bankruptcy filing, Celsius Network had up to 100,000 registered creditors at the time it suspended the withdrawals, and it reported assets worth between $1 billion and $10 billion. The corporation stated again that its liabilities are likewise within this range.
Ripple Labs is one of the crypto firms that indicated interest to purchase assets from bankrupt Celsius when it was having liquidity issues according to a report in August. Ripple said it was going to analyze Celsius’ assets before taking a final decision of acquiring Celsius.
A court order has revealed a timetable for the potential sales of Celsius Network. The court has set December 12 as the deadline for final bids and December 15 as the date for an auction if necessary and December 22 was approved for discussions on the sale order after a winner must have emerged.