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Luxembourg-based Bitstamp, one of Europe’s largest cryptocurrency exchanges by volume, has been acquired by NXMH, a Belgian private equity and investment firm. The two struck the deal in December 2017, but it took until now to receive regulatory approval. NXMH is a subsidiary of NXC Corporation, which also owns video game company Nexon and South Korean crypto exchange Korbit.
Nejc Kodric and Damian Merlak, two founders of Bitstamp — which has 1 million active users — will retain 10% and 6% stakes in the exchange, respectively. No other details about the deal have been disclosed, but the purchase price is rumored to be around $400 million, per Fortune.
- There were a number of interested buyers, but its ties to Korbit likely gave NXMH an edge. "Four serious buyers” from China and the US were previously interested in purchasing the crypto exchange, according to The Financial Times, which spoke with Kodric. However, this deal was likely most appealing to Bitstamp, as it can now collaborate on technology, research, and development with Korbit, while the two crypto companies will continue to operate separately.
- Bitstamp is generating profits, despite cryptos' volatility. Bitstamp has been profitable almost since it launched in 2011, according to Kodric, who will remain CEO of the exchange. Additionally, Bitstamp’s profits have increased in 2018, even though the crypto market has been in decline, with prices falling from their peak in December 2017. This makes Bitstamp a very promising addition for NXMH.
This acquisition will prepare Bitstamp for international expansion. The crypto exchange plans to expand globally, which NXMH will help the company with, likely by providing financial support. It hopes to eventually move into the Asian market, though it will wait for more regulatory clarity.
Meanwhile, we have seen other crypto exchanges sell stakes recently, with BK Global Consortium acquiring over 38% of South Korean-based Bithumb, for instance. This is a trend we can expect to see more of, especially as it seems interest in cryptos isn’t going anywhere, despite ongoing volatility.
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