Bitcoin surges above $28K after UBS agrees to buy Credit Suisse
Switzerland’s largest banking institution – UBS Group – entered into a merger agreement with its troubled rival – Credit Suisse. The former will pay $3.25 billion to complete the deal, which is 60% less than what Credit Suisse was worth at the end of last week.
Bitcoin reacted positively to the news, passing $28,500 for the first time since June 2022.
The rescue agreement
Swiss banking giant Credit Suisse revealed significant operational problems in recent weeks, prompting the Swiss central bank and the local financial regulator to step in.
UBS responded to the intervention, agreed to buy Credit Suisse for $3.25 billion. Under the terms of the agreement, all shareholders of Credit Suisse will receive 1 share in UBS for 22.48 shares in Credit Suisse.
The troubled bank will continue to operate as normal until the merger agreement is completed. In addition, the Swiss National Bank will give it access to facilities that offer significant additional liquidity.
“Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome.
This has been an extremely challenging time for Credit Suisse, and while the team has worked tirelessly to address many significant legacy issues and implement the new strategy, we are compelled to reach a solution today that delivers a lasting result, says Credit Suisse’s Chairman . of the board – Axel Lehmann – commented.
Interestingly, Tron’s founder – Justin Sun – also revealed his ambition to buy the bank, Offering 1.5 billion dollars. He vowed to integrate it into the Web3 universe, praising Switzerland as one of the most crypto-friendly destinations globally.
BTC continues to rise
The primary cryptocurrency surged to a nine-month high, hitting $28,500 (CoinGecko data), shortly after Credit Suisse revealed the merger details.
In the midst of this global banking disaster, bitcoin’s price has skyrocketed recently, up nearly 70% since the start of 2023.
The asset seems to thrive on such occasions when some of the world’s largest banks experience massive problems. After all, bitcoin was created during the last massive financial crisis caused by banks, many of which failed and had to be bailed out.
Recall that Silvergate Capital, Silicon Valley Bank and Signature Bank revealed operational problems, prompting regulators to shut them down. SVB – one of America’s top 20 banks before its demise – even archived for bankruptcy protection last week.
