Bitstamp has officially been acquired by NXMH, a European subsidiary of NXC Corp. from South Korea. It has been confirmed that NXMH acquired 80 percent stake at the company and Nejc Kodrič will retain his position as the CEO. According to the agreement, the two companies will continue operating independently with plans to work together in areas such as research in the future.
Bitstamp Acquired By A Belgium-based Investment Firm
It has been confirmed that Bitstamp, Europe’s oldest remaining and largest virtual currency exchange has new owners. According to a report released by the company on Monday, the exchange was acquired by NXMH, a Belgium-based company owned by NXC Corp. a South Korean group.
Nejc Kodrič, Bitstamp CEO wrote in a blog that for some time, various suitors have approached the company. Although the exchange has been reluctant to accept these offers, this time around they were convinced by the quality of the buyer and offer. Besides, at this time and age, consolidation in the Crypto sector is the way forward.
While speaking with Reuter, Kodrič admitted that the acquisition was not planned. He added that the exchange had not been going around looking for buyers. He told the Financial Times that this year alone, they have been approached by four buyers with some coming from the US and China.
Kodrič added that the Belgium-based investment company agreed that it will allow Bitstamp to operate as it is, meaning that there will be no changes in the way they deal with their customers. He added that they agreed that the vision, leadership, and mission of the exchange will be retained. Bitstamp’s customers are expected to benefit from improved trading functions, customer service, and user experience among other operations.
NXMH Acquires 80 Percent Stake
Before this acquisition, Pantera Capital Management and two funders owned Bitstamp. The hedge fund joined the company in 2014 after investing $10 million. According to Reuters, the two companies signed the all-cash deal on October 25. The agreement saw NXMH acquire 80 percent stake in the exchange.
Merlak, one of the funders in Bitstamp has been inactive since 2015 and accepted to sell his 30 percent stake at the exchange. The acquisition will not affect Kodrič and Pantera stakes as they will retain their 10 and 6 percent owners respectively with the Belgium-based investment company owning the remainder.
About Bitstamp And NXMH
Kodrič and Merlak came together in August 2011 to establish Bitstamp. Although the exchange started at a Slovenian garage, it has grown and now serves over 3 million customers. In 2014, the company was valued at $39 million but is now valued at $60 million.
NXMH is a subsidiary of NXC Corp., the South Korean group that also owns Nexon Co. Ltd and Korbit exchange in the country. The group provides online games in the US, Europe, Japan, and Korea. The Belgium-based NXMH manages assets worth over 2 billion euros.
Bitstamp and Korbit exchanges will continue to be managed separately. However, as they provide similar services to their customers but in different regions, they will cooperate in areas of development, research, and technology. This cooperation will bring many benefits to their customers.