Bitcoin Exchange Bithumb may get a new owner as reported by the local news agencies in Korea. Gaming giant Nexon from South Korea plans to procure the cryptocurrency exchange for a mammoth price of $460 Million.
Nexon is working with Vidente, leading Bithumb shareholder to buy Bithumb at 65% of its stakes.
Nexon Planning to Buy Bithumb
The South Korean news outlet Maekyung reported on January 7th, 2021, that Gaming Giant Nexon is completing the formalities to procure Bithumb and signed a memorandum to acquire 65 percent stakes in the exchange. Major Shareholder in Bithumb Vidente is reportedly collaborating with Nexon for the deal. Nexon already owns Bitstamp and Korbit, two other major cryptocurrency exchanges in South Korea. The parent company of Nexon, NCX, bought Bitstamp in October 201* through its investment firm NXMH. The Bithumb deal is evaluated at around 650 billion worth, which converts to $460 Billion at current rates.
Bithumb is trying to find a new buyer for quite some time, and primary bidding was done in September when several financial investors and firms had shown interest in buying the exchange. Samjong KPMG was appointed to lead the sale of exchange for $604 million. The legal investigations against the Chairman of Board for Bithumb, Lee Jung Huon, reportedly impacted the procurement process. Lee was accused of preselling BXA tokens to investors and later not listing the token, leading to the massive loss. Another attempted deal with BK Global Consortium did not work out as the Chairman of the company Kim Byung Gun could not pay the acquisition amount.
The current turbulence around Bithumb may clear to an extent after the acquisition and incoming of new management. The acquisition by a leading South Korean conglomerate would eliminate the regulatory issues around Bithumb and create more credibility for the exchange in the local market. Nixon has acquired several cryptocurrency firms and FinTechs. Bithumb is a leading exchange in South Korea, keeping trading volumes in consideration, and the acquisition will also boost Nexon’s stance in the Korean markets.
Disclaimer
The information discussed by The Coin Magazine is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Do your due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright The Coin Magazine All rights reserved.
