The Belgium-based investment firm NXMH has acquired crypto exchange Bitstamp in an “all cash deal”. The CEO of the Luxembourg-registered exchange Nejc Kodrič confirmed that the deal had been closed on October 25. He, however, declined to share the details of the deal. Bitstamp was valued at $60 million in 2016 as compared to its valuation of $39 million in 2014, as shared by Kodrič.
The exchange had four interested buyers as shared by Bitstamp’s CEO. But they decided to opt for NXMH, as it will be allowing the Luxembourg exchange to operate as it is. After this acquisition, NXMH acquires an 80 percent stake in the company. Kodrič will continue as the exchange’s CEO and he will retain a 10 percent ownership interest in Bitstamp.
NXMH that has acquired crypto exchange Bitstamp, with assets under management of more than 2 billion euros, is the European subsidiary of Korea-based media giant NXC Corp. NXC invests in digital technologies and also owns Korbit, the South Korean crypto exchange. Korbit and Bitstamp will be operating independently.
As per NXMH’s LinkedIn profile, it is focusing on majority buy-outs. The firm which is a family investment holding company is also operating as a subsidiary of Barclays and makes European consumer and tech investments. NXMH has also obtained part of crypto hedge fund Pantera Capital’s $10 million stake in the exchange. Bitstamp is presently ranked as the 47th largest crypto exchange on CoinMarketcap, with around $11,941,492,299 trades at press time, as reported on Cointelegraph.
Damian Merlak and Kodrič founded Bitstamp in 2011. Presently, the exchange has grown to more than 3 million registered customers. Kodrič mentioned that Merlak sold his entire 30 percent stake in the exchange with the deal and has not been active since 2015.
Like all other exchanges, crypto exchange Bitstamp has been impacted by the current decline in cryptocurrency prices. Kodrič pointed out that the exchange remained profitable in 2018 despite the volume being down between 60-70 percent. He added that this was possible as the current cryptocurrency prices were still much higher than what they were for most of 2017, as stated in the Reuters report.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]