Acquisition Of Bitstamp By NXMH – The oldest and largest cryptocurrency exchange in Europe ‘Bitstamp’ announced a couple of weeks ago that it has acquired by the Belgian firm NXMH, a subsidiary of South Korean conglomerate NXC, a private equity and investment company.
The Bitstamp Exchange Company sold most of its ownership to the Korean group. Still Nejc Kodrič will remain the CEO of the exchange. The Korean group NXC also owns the gaming giant Nexon and also Korbit, the country’s fourth largest crypto exchange.
Bitstamp, one of the world’s oldest and largest cryptocurrency exchanges which were co-founded by Slovenian native Nejc Kodrič with just 1,000 euros in 2011. It has raised a total of about $14 million from investors including Pantera Capital.
The financial terms and value of the sale have not informed to the media. Considering the company’s value in 2016 which was of $60 million USD. The value of the sale is speculated to be more than $100 million USD.
How did this acquisition take place?
Acquisition Of Bitstamp By NXMH-South Korea is the hub of technology innovations and gaming. The country’s major leaders like Nexon, Smilegate, Netmarble and NHN Entertainment have shown major interest in adopting blockchain technology. As a result to create new business models for their companies in one of the world’s most competitive gaming markets.
Nexon, with a $14.6 billion market cap, is the second-biggest company investing in cryptocurrencies in the country. Similarly after the telecom company SKT, according to Korea Exchange.
“Gaming companies want to adopt tech for a simple purpose–to raise income or revenue using game characters, the Korean gaming industry is regulated against trading game items with fiat money. But using the blockchain tech, they want to use crypto to exchange the game items and then exchange to fiat currency.”
-Han Ho-hyun, professor at Kyung Hee University.
Dominance Over The Market
Bitstamp has received many offers from various buyers due to its dominance. It has major contribute over the European cryptocurrency exchange market, investor protection, and compliance. But the decision to sell to NXMH was mainly due to the similarities between the vision of the two companies.
“The quality of the offer and the quality of the buyer also played an important part in the sale”
-NXMH CEO affirmed.
Bitstamp believes that the acquisition of the exchange by NXMH will strengthen and give competitive positioning, which will lead to a potential expansion outside of Europe into the Asia market.
“We do anticipate that this acquisition will strengthen Bitstamp’s positioning for growth, which will provide opportunities to better serve our customers.”