While other crypto firms struggle to remain afloat amid the crypto winter, Nexo is out there collecting these distressed firms like marbles. The London-based crypto firm has started a process to potentially acquire rival Vauld after the latter abruptly halted customer withdrawals on Monday.
Currently, Nexo has signed an indicative term sheet with Vauld with a plan to acquire up to 100% of the Singapore-based company. The term sheet offers Nexo a 60-day exclusive exploratory period to conduct due diligence.
At its peak, Vauld had assets under management of close to $1 billion. Currently a source close to the matter has said that the company’s balance sheet has a hole worth “mid to high double-digit millions”, which is less than $100 million.
Nexo co-founder Antoni Trenchev said, “We have to see what exactly is on their books and it’s going to take a little while. But since we have the exclusive exploratory period, we are the only ones looking at them right now.”
Trenchev further said that this exploratory period will be used to decide if Nexo could restructure or refinance Vauld.
If Vauld has some assets staked for longer periods or has made investments for a long duration, Nexo could take those and instantly provide liquidity.
“We have to view it in the overall context of if we step in, can we restructure the business so that it is functioning again, so that it is profitable within the Nexo umbrella, which as a company is profitable and whether we can accumulate that,” said Trenchev.
However, if Vauld’s assets have been lost, Nexo could potentially replenish them if it makes sense.
Nexo is interested in Vauld due to its large customer base in India and Southeast Asia, said Trenchev.
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Nexo aims to explore the integration of a wider retail and institutional product range, strong liquidity, legal and regulatory expertise, unparalleled automation, risk management, and the best business practices.
With this acquisition Nexo’ aim is not only to protect Vauld’s existing customer base to the fullest extent possible but also to give them access to an improved range of services.
