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Ripple shows interest in acquiring Celsius assets

Ryan Lawler
Aug 11, 2022
Illustration of a hand with a pen drawing connecting lines between pixelated crypto coins
Illustration: Natalie Peeples/Axios

Ripple Labs, the San Francisco-based crypto company behind XRP, may be interested in acquiring assets from bankrupt crypto lender Celsius, Reuters reports.

Why it matters: Although it has not been overly acquisitive so far, Ripple has the balance sheet to be a major acquirer if this crypto winter persists.

Driving the news: Last week, attorneys from the law firm Davis Wright Tremaine submitted filings in U.S. Bankruptcy Court to represent Ripple in the proceedings.

  • On Tuesday, a Ripple spokesperson told Reuters the company is "interested in learning about Celsius and its assets, and whether any could be relevant to our business.”

Yes, but: The spokesperson declined to say if Ripple was interested in acquiring Celsius outright.

Between the lines: When Ripple repurchased all of its Series C shares at a $15 billion valuation at the beginning of the year, the company claimed to have over $1 billion on its balance sheet.

  • And CEO Brad Garlinghouse has said he expects his company would be a part of an uptick in M&A during this crypto winter.
  • So far, however, the company has been content to sit on the sidelines while companies like FTX have been much more active in brokering deals.

The intrigue: Any M&A interest from Ripple could be complicated by its ongoing legal case with the SEC.

  • Garlinghouse even told Axios in June that the company could leave the U.S. if the ruling doesn’t go its way.

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