Cryptocurrency Exchange Bitstamp Acquired by South Korean Conglomerate for an Undisclosed Amount
Bitstamp, one of the top-30 cryptocurrency exchanges in the world by daily trading volume, was acquired by Belgium-based investment company NXMH for an undisclosed amount in cash, reported Reuters on October 29, 2018.
Another Crypto Exchange Acquired
With the successful purchase, NXMH now reportedly has 80 percent stake in Bitstamp, while CEO Nejc Kodric retains a 10 percent ownership interest in the platform and will continue to function with this role at Bitstamp.
Other stakeholders of the exchange, including co-founder Damian Marlak and Pantera Capital, have now sold part of their stake to NXMH.
Co-founded in 2011 by Kodric and Merlak, Bitstamp currently has more than three million registered customers, and is he largest cryptocurrency exchange in the European Union by daily trading volume of over $100 million in various cryptocurrencies.
According to Kodric, the exchange had just one server, a couple of laptops, and a thousand euros in capital at inception, but is now valued at more than $60 million.
Kodric revealed that the sale of the cryptocurrency exchange was not planned, as the team did not make active efforts to solicit for interested buyers. However, Bitstamp started receiving bids from buyers in 2017 when the price of bitcoin and altcoins were sky high.
“The vibrant industry last year sparked potential interest from buyers to make a footprint in the industry. We started to get approached by interested buyers in the middle of last year.”
While Kodric reportedly had several buyers scrambling to become the new owners of Bitstamp, he noted that NXMH was chosen because the firm agreed to build upon the existing legacy of the exchange and allow him to retain his position as the CEO of Bitstamp crypto exchange.
With more than 2 billion euros in assets under management, NXMH is the investment arm of NXC, a South Korean conglomerate that owns Korean cryptocurrency exchange Korbit and Nexon, a highly reputed game developer. In April 2018, the latter was aiming to purchase Bitstamp for an estimated $350 million, as reported by BTCManager.
Meanwhile, the NXMH team has made clear that both Bitstamp and Korbit will operate independently.