Luxembourg based cryptocurrency exchange, Bitstamp, has been acquired by Belgium based investment firm NXMH. In a press release signed by Nejc Kodrič, CEO of Bitstamp on 29 Oct. 2018, Bitstamp was sold for an undisclosed amount in an all-cash deal. The acquisition deal was signed on Oct. 25, 2018.
“Today I am pleased to announce that Bitstamp has been acquired by NXMH, a Belgian-based investment company.”Said Kodrič.
Pantera Capital Management LP, which made a $10 million investment in the company in 2014, also sold part of its stake in Bitstamp to NXMH.
Bitstamp in Brief
Kodrič and Damian Merlak founded Bitstamp in 2011. However, Merlak disposed of his entire 30 per cent stake in the company. Over time, the company has grown to more than 3 million registered customers today.
It is noteworthy that regarding volume, Bitstamp retains the number one slot in the entire European Union, with a turnover of $100 million per day. On the other hand, NXMH, a European subsidiary of South Korea-based NXC, manages assets worth more than 2 billion euros. It mainly focuses on investing in digital technologies. Importantly, NXC also owns Korbit, a South Korean exchange. That notwithstanding, Korbit and Bitstamp will operate independently.
Reportedly, through the acquisition, Kodrič will retain a 10 per cent stake in the company, while NXMH acquires an 80 per cent stake. However, Kodrič will remain the CEO.
Kodrič was categorical that Bitstamp had four interested buyers, but they chose NXMH to let Luxemburg operate as it is.
“The vibrant industry last year sparked potential interest from buyers to make a footprint in the industry. We started to get approached by buyers in the middle of last year,” he added.
On the surprise acquisition, Kodrič declared that:
“The sale wasn’t planned. There was no active effort to go around and solicit buyer”.
Admittedly, the current decline in cryptocurrency prices has dramatically affected cryptocurrency exchanges, and Bitstamp is no exception. Kodrič admits that volume has plummeted between 60-70 per cent. However, he clarifies that remained in the profit zone in 2018 because prices were higher compared to last year.
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