- Galaxy Digital has announced its intention to acquire GK8 from Celsius Network [CEL]
- CEL has seen an increase in backlogs in the past week
On December 2nd, Galaxy Digital (Galaxy), a financial services and investment management company, confirmed its intention to acquire the highly secure asset manager GK8. The organization planned to acquire it from the now-defunct Celsius cryptocurrency lending network [CEL].
Read Celsius Networks [CEL] Price forecast 2023-2024
While still in business, Celsius acquired Israel-based GK8 for $115 million in November 2021. The acquisition of digital assets custodian Galaxy Digital was carried out alongside the divestiture of Celsius Networks assets as the bankruptcy process continues.
According to the press release, through the acquisition of GK8 and Galaxy,
“It intends to support GK8’s ongoing business to deliver unique self-care technology to the world’s leading financial services companies, as well as use the GK8 storage solution in the ongoing development of GalaxyOne.”
Mike Novogratz, Founder and CEO of Galaxy said:
“The acquisition of GK8 is a cornerstone of our quest to create a full-service financial platform for digital assets, ensuring our customers the ability to store their digital assets on or off Galaxy without compromising on versatility and functionality. Adding GK8 to our flagship offering at this pivotal moment for our industry also demonstrates our readiness Continuing to take advantage of strategic opportunities to grow Galaxy sustainably.”
Raise the CEL temperature
At press time, CEL is trading at $0.5259, having posted a gain of 0.30% over the past 24 hours. A daily chart evaluation of CEL’s performance showed an increase in token accumulation since November 21. The increase in buying pressure culminated in a new bullish cycle on November 24. Thus reflecting the rest of the general cryptocurrency market.
At the time of writing, the CEL Money Flow Index (MFI) is close to an overbought position at 66.43. A few days ago it settled below the 50 neutral area before the further rally came.
Although it is positioned below the neutral point, the Relative Strength Index (RSI) for CEL is in an upward trend at the time of publication. Between November 21 and the time of publication, the RSI for CEL has risen from an oversold position of 27 to 40.95. This showed that the buying momentum has increased in recent days.
Similarly, the dynamic line of Chaikin Money Flow increased from -0. 14 on November 21 to return a positive value of 0.03 at the time of publication. This represents a significant growth in CEL buying momentum over the past week.
However, despite the slight increase in CEL accumulation, investors continued to see losses on their investments. This was partly due to the decline in the general cryptocurrency market and the sudden collapse of FTX. Moreover, investors have remained mostly wary of CEL, as the token is still mired in negative sentiment.