Hodlnaut Rejects OPNX’s Acquisition Bid
The interim judicial managers of Hodlnaut, a beleaguered crypto lender, have turned down the latest acquisition offer from OPNX. In August 2023, OPNX, affiliated with collapsed hedge fund Three Arrows Capital (3AC), proposed to purchase a significant 75% ownership stake in Hodlnaut. However, Hodlnaut administrators argue that the $30 million offer of FLEX tokens has “speculative value” and is illiquid. Most of the crypto lender’s creditors, accounting for 60% of the total debt, supported this decision. Bloomberg reports that the FLEX token’s price has declined by over 92% since OPNX made the bid. The native cryptocurrency of CoinFLEX exchange, FLEX Coin, has experienced extreme volatility and is currently valued at $0.584586.
Concerns About OPNX’s Offer
Aside from the issues surrounding the FLEX token, Hodlnaut administrators raised other questions about OPNX’s $30 million offer. One concern is the absence of cash injection or assets with similar liquidity. The administrators also highlighted the lack of a timeline for repayment of creditors’ debt and the absence of details regarding payment beyond 30% of liabilities. Additionally, the involvement of Three Arrows Capital founders Kyle Davies and Su Zhu in OPNX’s bid has raised concerns due to their legal battles with 3AC creditors in the United States. The Monetary Authority of Singapore (MAS) recently imposed a 9-year ban on Davies and Zhu, prohibiting them from engaging in regulated business activities in Singapore.
Hot Take: Hodlnaut Remains Cautious in Rejecting OPNX’s Bid
Hodlnaut’s rejection of OPNX’s acquisition bid showcases their caution and skepticism towards the offer. The concerns about the illiquid and speculative nature of the FLEX tokens, along with the lack of clarity regarding repayment and payment details, demonstrate Hodlnaut’s commitment to protecting its creditors’ interests. The involvement of individuals facing legal battles and regulatory bans further raises doubts about the credibility and stability of OPNX’s proposal. Hodlnaut’s decision highlights the importance of carefully evaluating acquisition offers in the crypto space to ensure the long-term viability and sustainability of a company.
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