Nexo Eyes Potential M&A Targets as Crypto Market in ‘State of Fear’
As the crypto market has entered “a state of fear,” and “nobody can say” whether the bottom is already behind us, major crypto lender Nexo (NEXO) is eyeing possibilities to acquire troubled companies, according to its co-founders.
Speaking in a livestreamed AMA (ask me anything) session on Tuesday, Kalin Metodiev, the co-founder and managing partner of the firm, said the market has now moved from what he described as an “an overly optimistic state” to “a state of fear.”
“We believe there is some volatility on the horizon still, and nobody can say whether this is the bottom,” Metodiev said, warning investors that they should “definitely buckle up” to be prepared for whatever comes next.
Nexo is a crypto lending and borrowing company operating with a similar business model as Celsius (CEL), the troubled major crypto lender that recently halted all customer withdrawals due to “extreme market conditions.”
Commenting on the situation surrounding Celsius and the broader industry, Metodiev said “some companies have gone into trouble for various reasons,” while adding that Nexo has initiated unspecified “conversations” with some of those troubled companies.
He stressed that Nexo is only working for the betterment of the industry, and that it does what it can in this regard.
“We have always been very open about our commitment to the growth of the ecosystem […] we are always interested in supporting companies, partnering [with] projects and teams that have a clear vision of how they can create an innovative product that will be demanded by the blockchain community,” the Nexo co-founder said.
He added that one way this commitment to companies in the ecosystem could be manifested is through a potential “acquisition of certain parts of the business or the entire business.”
As previously reported, Nexo earlier this month extended an offer to Celsius to acquire “all or part of Celsius’ qualifying, outstanding collateralized loan receivables.”