Cryptocurrency News

Crypto Exchange Bitstamp acquired by Belgium based firm in All-Cash Deal

Crypto Exchange Bitstamp acquired by Belgium based firm in All-Cash Deal
Crypto Exchange Bitstamp acquired by Belgium based firm in All-Cash Deal

Bitstamp, among the earliest and biggest bitcoin markets, has been obtained by Belgian investment company NXMH.

Fortune reports that the Brussels-based NXMH bought an 80 percent ownership stake at the Luxembourg-based cryptocurrency market, which started in 2011, soon following the initial “bitcoin bubble” drove the bitcoin cost up as large as $31 and back down to $2.

Details of the deal weren’t revealed, however, earlier this season, rumors had circulated that the cryptocurrency market — that was launched from a garage in Slovenia with only 1,000 euros in funds — was looking up to $400 million and had been at the last phases of inking an agreement with a South Korean investment company.

While NXMH is based in Belgium, not South Korea, it’s a subsidiary of NXC, ”the South Korean technology investment company which also possesses regional cryptocurrency market giant Korbit. In April, NXC denied reports that the company had obtained Bitstamp for $350 million.

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Bitstamp co-founder and CEO Nejc Kodrič advised Reuters the trade had four curious suitors but picked NXMH because it had been ready to let the bitcoin market — among the biggest in the European Union — to keep functioning as a separate entity. He explained that the company and Korbit “spoke about” merging but chose to stay separate. Hence, he explained that neither investors nor the organization’s 180 employees must observe any substantial alterations.

“The vibrant business last year sparked prospective attention from buyers to produce a footprint in the business. We began to get approached by buyers at the middle of this past year,” he explained. “We weren’t seeking to market,” he added during an interview with Fortune. “We’re certainly not searching for investment since we did not need to boost the funds.”

Kodrič, who stated that he keeps a 10 percent ownership stake in the market, further expressed optimism that supplementing with NXMH will help Bitstamp since it attempts to expand its operations.

“We’re very much aligned–at which we see the business going and exactly what the provider wishes to be,” he explained. “They are prepared to assist us along the way, and assist us with our worldwide growth.”

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Cryptocurrency hedge fund Pantera Capital, that spent $10 million in Bitstamp in 2014, also sold a part of its position to NXMH but kept some interest from the market.