Gaming Giant Nexon to Acquire Bithumb
- According to local media, the gaming company will acquire a 65% stake in Bithumb at an evaluated price of $460 million.
- If successful in its acquisition, Nixon will become the owner of three crypto exchanges, having previously acquired Bitstamp and Korbit.
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One of South Korea’s top gaming firms, Nexon, is preparing to acquire the country’s largest cryptocurrency exchange for around $460 million, local news outlet Maekyung reported on 7 January.
According to the publication, the gaming company has already signed a memorandum of understanding (MoU) with Bithumb to acquire 65% stake in the exchange at an evaluated price of 650 billion won (around $460 million). Nexon is reportedly working with one of the major shareholders of the exchange, Vidente, to broker the deal, which will give Nexon control over the exchange.
Considering the exchange’s existing shares are trading at a total value of 1 trillion won ($914 million), Nexon’s takeover comes at a discounted price. If the acquisition goes successfully, Nexon will become the owner of three crypto exchanges, having previously acquired Bitstamp in October 2018, and Korbit in September 2017.
The news outlet further stated that the deal has been in the works since late August. In September, Bithumb held a preliminary bidding with a number of financial and strategic investors, including domestic and foreign private equity fund managers.
It remains unknown, however, if the sale will go through smoothly considering the legal troubles the exchange is in right now. The exchange and its chairman Lee Jung Hoon were under investigation by local authorities for pre-selling Bithumb’s native token BXA for around $27 million to investors, and then not releasing the token.
- The former chairman of crypto exchange Bithumb, Kang Jong-Hyun, was arrested in South Korea on charges of embezzlement, breach of trust, and market manipulation.
- Seoul’s Southern District Court had issued an arrest warrant for Jong-Hyun and two other executives last week, one of which is the CEO of two Bithumb affiliates.
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- Bithumb’s parent company, Vidente, had recently entered into acquisition talks, and is still considering between an outright sale and joint ownership.
- According to its latest regulatory filing, Vidente has ownership over 34.2% of Bithumb Holdings, and 10.22% of Bithumb Korea.
- South Korean exchange Bithumb announced on its 7th anniversary it will actively address new regulations and markets.
- The exchange is set to open up a BTC market and seek the VASP license from FATF in 2021.