Singapore, SINGAPORE – Luxemberg-based Bitstamp, the EU’s largest crypto exchange, has been acquired by NXMH whose parent company owns of South Korean crypto exchange Korbit. While Bitstamp remains tight lipped regarding the terms of the deal, Fortune reports rumors that the deal was around US$400 million—all cash.
Founded in 2011 by CEO and co-founder Nejc Kodric, Bitstamp was valued at US$60 million in 2016 with transaction values reportedly exceeding US$100 million daily. Despite sharing the same parent company, Kodric assures that Bitstamp and Korbit will still operate independently:
“We’ve talked about it, but we decided to keep the companies running separately.”
Prior to the acquisition, the company’s shares were divided between Kodric, co-founder Damian Merlak and hedge fund Pantera Capital Management at a roughly equal manner. Pantera Capital Management had previously invested US$10 million into Bitstamp in 2014. Merlak had reportedly sold the entirety of his 30% stake in the company to NXMH.
Kodric still maintains his position as Bitstamp CEO. The 180-strong exchange had reportedly been approached by four serious bidders since mid-2017 with the deal with NXMH finally being struck in last December. Kodric has since cashed out on the majority of his stake in the company while retaining a 10% share as he sees NXMH as a “likeminded partner”.
“We were very much aligned—where we see the industry going and what the company wants to be. They’re willing to help us along the way, and help us with our global expansion.” – Nejc Kodric
NXMH investment manager Hendrik Ghys said that:
“Bitstamp is one of the oldest and most-respected cryptocurrency exchanges and we see positive growth potential as the industry continues to evolve … We acquired Bitstamp because we see it as a strategic, long-term investment.”
At press time, Bitstamp is ranked 30th biggest crypto exchange on CoinMarketCap based on daily volume.