It is believed that the acquisition of Bithumb by Nexon may greatly contribute to the creation of a positive image around the platform in particular and the industry in general.
South Korea’s top gaming conglomerate Nexon is planning to acquire the Bithumb cryptocurrency exchange. Reports revealed that the transaction was led by Kim Jung-Ju, the CEO of NXC Corporation, Nexon’s parent company. Additionally, a successful acquisition would result in Nexon taking over Bithumb’s existing shares at ‘discounted price.’
Nexon Set to Acquire Bithumb
According to a South Korean media report, Nexon is preparing to acquire the digital asset exchange Bithumb for around 500 billion won. The report revealed that the acquisition would give Nexon a 65% stake in Bithumb. Already,the gaming company has signed a memorandum of understanding (MOU) with the crypto exchange.
The report further revealed that the sales of Bithumb began in August 2020 with Samjong KPMG as the sales coordinator. A month after the sales bidding started, several financial investors (FIs), strategic investors (SIs), and domestic and froeign private equity fund (PEF) managers participated in a preliminary bidding held in September.
However, the sales process was delayed as Bithumb Korea chairman Lee Jung Hoon was under investigation for fraud involving the BXA token by the Seoul police. Seoul Shinmun reported that the Seoul Metropolitan Police Agency began a seizure and search for Bithumb on the 2nd of September. The report further said that Lee Jung Hoon was being investigated for the escape of property abroad.
In a tweet, Forbes and Cointelegraph contributor Joseph Young reacted to the news on Nexon’s plan to acquire Bithumb.
Bithumb is the biggest South Korean crypto exchange by volume but has had major issues in the past.
Nexon’s acquisition would improve the image around the most dominant crypto trading platform in the local market. (2/3) pic.twitter.com/5grdih7jfD
— Joseph Young (@iamjosephyoung) January 7, 2021
Speaking further in the Twitter thread, the Cointelegraph contributor said that Nexon founder Kim Seong-Ju will work with one of the major shareholders in Bithumb to “buy out the company and take control of the firm.”
Nexon’s Investments in Crypto
Notably, Nexon’s holding company NXC has been investing in cryptocurrency and fintech companies. In 2017, NXC acquired its first exchange. NXC acquired South Korean crypto exchange Korbit for 91.3 billion KRW (about $80 million at the time).
Speaking to TechCrunch, a spokesperson from NXC said the company has plans to invest in fintech startups and companies with digital ideas.
About a year after possessing Korbit, NXC moved further to acquire Bitstamp exchange for 434.9 million ($400 million). Nexon’s dominance in the market has gradually increased with its various acquisitions.
In March 2020, Nexon added the NIS Indra Fund to its possession. Nexon bought NIS IndraFund Ltd. for $95 million to own a 92.23% stake in the Indian fintech fund.
You can learn about other recent deals and acquisitions in the business news section on Coinspeaker.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.