Crypto lender Nexo offers to buy embattled rival Vauld as market consolidates

cnbc.com:

Beleaguered cryptocurrency lender Vauld has been thrown a lifeline from larger competitor Nexo, in a sign of mounting consolidation in the crypto market.

Nexo said Tuesday it had signed a term sheet with Vauld giving it 60 days of exclusive talks to explore an all-equity acquisition of the company. If successful, Nexo said it plans to restructure the company and pursue an expansion in Southeast Asia and India.

Vauld on Monday paused operations and said it was exploring restructuring options due to «financial challenges» posed by a sharp plunge in cryptocurrencies. The Singapore-based company is backed by the likes of Coinbase and Silicon Valley billionaire Peter Thiel.

It's the latest firm to get caught up in the chaos gripping the crypto world lately. In the last month alone, Celsius, another crypto lending firm, put an indefinite pause on withdrawals citing «extreme market conditions.» Meanwhile, Three Arrows Capital, a crypto hedge fund, applied for bankruptcy protection days after collapsing into liquidation.

Asked how much Nexo was willing to pay for Vauld, co-founder Antoni Trenchev said it was «premature» to speak about a valuation at this stage. However, he added he was «optimistic» about reaching a deal.

«We are starting the due diligence,» Nexo's chief told CNBC. «We have a 60-day window of exclusivity where they will open up the books. You will see everything. Is there a hole? How big is the hole? Where are the assets? Who are the counterparties?»

Nexo previously gave Celsius a letter of intent offering to buy the company, however it said the company refused its offer.

With no government to turn to, several crypto firms have sought the help of their peers in hopes of a bailout instead.

Sam Bankman-Fried, the