Bitstamp Cryptocurrency Exchange Purchased by NXMH
Luxembourg-based cryptocurrency exchange Bitstamp has announced it’s acquisition by NXMH, a Belgian firm whose parent company already owns South Korea’s Korbit crypto exchange. The purchased was agreed to in December 2017 and, upon the go-ahead of regulators, finalized on October 25th, 2018.
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‘Supports Our Strategic Growth Initiatives,’ Says Bitstamp CEO
On October 29th, Bitstamp announced it had been purchased for an undisclosed price by Belgian investment firm NXMH, a public formalization of a deal the two parties privately agreed to at the close of last year.
Per volume, the exchange is currently the largest in Europe’s nook of the cryptoverse and hosts a few million users.
NXMH, itself a Brussels-based subsidiary of NXC, a South Korean investment and development power that already owns a crypto exchange in Korbit, is thus betting the cryptoeconomy isn’t going anywhere and will inject resources into Bitstamp to further optimize its services accordingly.
Nejc Kodrič, the current chief executive officer of Bitstamp, will stay on in that position despite the acquisition. Kodrič, who co-founded the platform back in 2011, said the deal marked the next major step in the exchange’s evolution:
“We see cryptocurrency continuing to become more mainstream and a part of people’s everyday lives, as well as growing at the institutional level as the gap between the digital and traditional financial worlds keeps shrinking. NXMH’s acquisition of Bitstamp supports our strategic growth initiatives.”
The Nexon Connection
It’s worth keeping in mind that NXC owns popular South Korean gaming company Nexon.
Earlier this year, reporting broke that it was Nexon who was planning to acquire Bitstamp, though Nexon CEO Lee Jung-hun quickly denied that assertion.
In retrospect, it was close but no cigar, as it wasn’t Nexon that was working to purchase Bitstamp, but rather a Belgian subsidiary of its parent company NXC.
“Nexon Korea does not have anything to do with a Bitstamp acquisition,” Lee Jung-hun said at the time. “We do not have any plans to link cryptocurrencies with our game business.”
It’s not clear if that lack of plans will remain the case with NXC making crypto moves, but Bitstamp and Korbit will collaborate on various projects while remaining operationally indepdent, per the announcement.
What’s your take? Do you think exchange acquisitions are going to become much more common, or should these platforms try to maintain their independence? Let us know in the comments section below.
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