• Vauld, a crypto lending firm, has rejected a long-standing acquisition offer from its competitor Nexo.
• Vauld expressed concern over Nexo’s solvency and its plan to handle U.S.-based customers.
• Nexo had revised its proposal multiple times, with its final offer being rejected by Vauld.
Crypto lending firm Vauld has declared that it will not accept a long-standing acquisition offer from larger competitor, Nexo. The news came via a private letter sent to Nexo by Vauld’s co-founder and CEO Darshan Bathija on Jan. 5.
Vauld expressed worries over Nexo’s solvency and how it intended to handle U.S.-based customers. The proposed acquisition had been under consideration since July of last year, but hit several roadblocks in the months that followed. Nexo revised its proposal multiple times, with its final offer being rejected by Vauld. In the rejection letter, Vauld stated that it „unanimously do not accept your proposal as it stands.“
Hours before the rejection of the final offer, Nexo had published an open letter containing the proposal. In the letter, the company declared it to be „the best possible path forward“ and „the only path forward.“ The terms of the final offer proposed by Nexo included taking over Vauld’s customer base, assets, and liabilities. However, Vauld didn’t feel confident in Nexo’s solvency assessment and its plans to handle U.S.-based customers, leading to the rejection of the offer.
Vauld’s decision to reject the offer comes after its bankruptcy filing last summer due to the collapse of Celsius. Since then, Vauld had been relying on Nexo for assistance. The outcome of this offer is a major blow for Nexo, who had been hoping to expand their market share in the crypto lending space. It remains to be seen what the future holds for both companies.