Belgian-based investment company NXMH has bought the European Union’s biggest cryptocurrency exchange, Bitstamp in an all-cash deal, according to a release issued by the exchange’s CEO Nejc Kodrič.
ANNOUNCING: Bitstamp was acquired by Belgium-based investment company NXMH. Our team, leadership and vision all remain the same. We believe this is the logical next step on our mission to be the most trusted digital currency exchange on the market: https://t.co/UxjNpDeKNR pic.twitter.com/3MUoQtdXFn— Bitstamp (@Bitstamp) October 29, 2018
While Bitstamp has been approached by suitors since the middle of last year, the exchange finally decided to sell due to a combination of the quality of the buyer, the quality of the offer, and because the team feels that the industry has now reached a point where consolidation makes sense. One of the biggest factors that led to the sale was that the mission, leadership, and vision of the company remains unchanged.
Reuters reports that, while Kodrič declined to disclose the details of the deal, he did state that in 2016, the exchange was valued at $60 million, up from the previous valuation $39 million in 2014. The exchange also sees a daily turnover of $100 million.
NXMH is the European subsidiary of South Korean-based NXC, which also own South Korean cryptocurrency exchange Korbit. The two exchanges are said to operate independently.
In an interview with Reuters, Kodrič said “The sale wasn’t planned. There was no active effort to go around and solicit buyers.”
The sale sees NXMH acquire an 80% stake in the exchange, while Kodrič keeps 10% ownership and remains CEO. Pantera Capital Management, which made a $10 million investment in Bitstamp in 2014, also sold its stake in the exchange to NXMH.