FTX has been actively seeking potential targets for acquisition during the latest bear market, including Celsius competitor Voyager. Often its terms have included extremely challenging performance targets that need to be hit before the full amounts of funding are unlocked.
FTX reportedly passed on acquiring Celsius earlier this year, citing the hole in the company’s balance sheet. This same hole has led to probes into Celsius’ finances being approved by the bankruptcy court.
Alex Mashinsky, along with Celsius executives, had promised to submit plans for reorganization codenamed ‘Kelvin’ that would eventually allow the company to continue to operate. Precise details of these plans have been somewhat limited and many came from a leaked ‘all-hands’ meeting in which Mashinsky compared the Celsius bankruptcy to Pepsi’s financial problems. Mashinsky has since resigned at the urging of the UCC.
The hearing regarding this motion has been scheduled for October 20 and it’s still unclear exactly how much value truly remains for potential purchasers.